LS Electric to invest $168M to expand US switchgear capacity

MCM Engineering II (LS Electric)

LS Electric said Wednesday it will invest $168 million to expand its switchgear manufacturing capacity in the US, as the Korean power equipment maker seeks to bolster its footprint across the North American market.

The company currently manages two switchgear sites in the US: MCM Engineering II in Utah and the Bastrop Campus in Texas. The fund will be used to triple production capacity in the Utah plant.

The current Utah facility will be expanded sixfold from 13,233 square meters to 79,338 square meters, with three additional production buildings to be constructed by 2030, the company said.

As a result of this expansion project, LS Electric has successfully secured tax reduction incentives from the Utah Inland Port Authority. This benefit will reduce the increase in property taxes generated by business expansion by up to 30 percent over the next 25 years.

Last year, LS Electric announced plans to invest a total of $240 million in production bases across North America by 2030, establishing a local value chain that encompasses sales, engineering, production, and services.

LS Electric is also set to construct a local sales and service office in Dallas, Texas and a business base in Atlanta, Georgia, alongside its Chicago body and the LA West Branch.

“Utah has a strong labor force, robust infrastructure and a corporate-friendly regulatory environment, making it a highly competitive location for LS Electric to continue expanding its advanced switchgear manufacturing capabilities,” said an official from LS Electric.

“This campus expansion project will strengthen our responsiveness to the North American market and expedite the growth of our global power infrastructure business.”