LS Cable's subsidiary, Gaon Cable, is accelerating its entry into the North American market as the U.S. strengthens tariffs on steel, aluminum, and copper products. By expanding local production capabilities, the company aims to mitigate tariff burdens and supply chain uncertainties while broadening its business scope from transmission networks to power plants in artificial intelligence (AI) data centers.
Gaon Cable operates its production subsidiary, LSCUS, in Tarboro, North Carolina, and announced on November 3 that it is expanding its presence in the North American power infrastructure market. The company supplies power cables and bus ducts to global tech giants and AI cloud companies based on local production.
The U.S. government has increased tariffs on steel, aluminum, copper, and related derivatives. As tariff burdens vary depending on the product and origin, companies with local production bases are gaining a competitive edge.
Products manufactured in the U.S. can reduce exposure to tariffs associated with imported finished goods and respond flexibly to customer demands for delivery times and supply chain stability.
In response to these market changes, Gaon Cable is expanding LSCUS's production capacity. The company plans to invest approximately $50 million (around 76 billion won at the time of announcement) to add two production lines at the Tarboro facility, aiming to double its cable production capacity by 2027. Additional expansions are also being considered based on increased orders and customer investment schedules.
The growth of local operations is significant. LSCUS's revenue is expected to rise from approximately 440 billion won in 2025 to about 870 billion won this year, and to around 1.5 trillion won by 2027, marking a growth of about 3.4 times in just two years.
At the center of this growth is the AI data center sector. LSCUS has secured long-term supply contracts for bus ducts worth over 5 trillion won with global tech companies through 2030. Bus ducts are distribution facilities that reliably supply large amounts of power, and demand is increasing as power consumption in AI data centers surges.
In particular, AI data centers in the U.S. are expanding into large campus formats, with tech giants even pursuing the construction of their own power plants to ensure stable power supply. Consequently, demand is spreading not only for bus ducts used for internal power supply but also for distribution cables connecting power plants and data centers, as well as overhead lines for long-distance transmission.
Gaon Cable plans to expand its business scope in the U.S. from distribution to transmission. The company is pursuing the establishment of new overhead line production facilities at LSCUS to enter the U.S. transmission market, aiming for its first revenue by 2029.
According to the Edison Electric Institute (EEI), local power companies plan to invest approximately $178 billion (around 242 trillion won) in the transmission network from 2025 to 2028. This investment is driven by the demand for expanding power grids due to the growth of AI data centers and advanced manufacturing facilities, as well as the connection of new power sources.
Gaon Cable is also considering cables for nuclear power plants as a future business. In response to the expansion of new nuclear power plants and power infrastructure investments in the U.S., the company is examining certification and commercialization requirements for related products and plans to gradually enter the market in line with project timelines.
Gaon Cable's strategy is to establish a comprehensive power infrastructure supply system in North America by expanding its product range to include distribution cables, bus ducts, overhead lines, and nuclear power cables, centered around its local production base.
* This article has been translated by AI.
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