LS Electric has established a joint venture with Taiwan's largest petrochemical company, Formosa Plastics Group, to enhance its local power solutions business.
On October 6, LS Electric signed a joint venture agreement with Nanya Plastics, a subsidiary of Formosa Plastics Group, and KHI at the LS Yongsan Tower in Seoul.
The joint venture, named 'Nanya Le Xing,' will see LS Electric holding a 50% stake, Nanya Plastics 40%, and KHI 10%.
Nanya Plastics is Taiwan's largest petrochemical and electronic materials company, recently focusing on developing its power solutions business. The company is expanding its operations from traditional distribution products to include ultra-high voltage transmission equipment and power grid stabilization.
The joint venture aims to secure capabilities for undertaking power projects in Taiwan, from bidding to design and technical support. By combining LS Electric's manufacturing and design expertise with Nanya Plastics' local production base and EPC network, the partnership seeks to enhance its competitive edge in securing contracts.
This joint venture follows a memorandum of understanding (MOU) signed by both companies in March of last year, which focused on collaboration in eco-friendly power equipment and energy efficiency solutions in Taiwan. The two companies have previously cooperated primarily in supplying power equipment and will now expand their collaboration to include engineering and project bidding.
As the Taiwanese government promotes renewable energy and carbon neutrality policies, investments in local power infrastructure are increasing. Key markets include eco-friendly power facilities, energy storage systems (ESS), and digital smart grids.
An LS Electric official stated, "The business in Taiwan, which has remained at the level of supplying power equipment, will expand into project bidding by combining engineering capabilities through the joint venture. We expect to achieve early results in securing contracts for Taiwan's power infrastructure by leveraging the strengths of both companies."
* This article has been translated by AI.
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