South Korea’s LS Cable & System is to invest US$680M building the largest submarine power cable plant in the USA

News Analysis

17

Jul

2024

South Korea’s LS Cable & System is to invest US$680M building the largest submarine power cable plant in the USA

The Korean subsea cablemaker is bringing its technological expertise to enable the energy transition in offshore wind across North America.

LS Cable & System has committed to investing US$680M in its US subsidiary, LS GreenLink, to build the largest submarine power cable plant in the country. The plant will be constructed in Chesapeake, Virginia, on the Hampton Roads Beltway, Elizabeth River. The facility, that will employ 330 when it opens at the end of 2027, qualified for US$99M in investment tax credits from the Inflation Reduction Act of 2022.

The plant joins other submarine cable investments previously announced in the United States by World #1 Prysmian (at Brayton Point, Somerset, Massachusetts) and Nexans (in Charleston, South Carolina), but it is of a much greater scale and ambition. Power cables for installation in US onshore and offshore wind farms must be built and assembled in America to comply with strict local content regulations.

Commenting on the investment LS President & CEO Ben-Kyu Koo said, “This cutting-edge facility underscores our dedication to advanced technology and engineering. It will not only bolster our capacity to meet the increasing global demand for submarine power cables but also establish us as a leader in the [US] industry.

In addition to its submarine power cable plant in Donghae city, Republic of Korea, LS Cable & System is already planning other new investments to extend its global footprint. It has recently signed a long-term lease to build a new HVDC submarine power cable plant on the Renewables Quay of the River Tyne, Tyne & Wear, United Kingdom, which will enter full production in 2027, and has plans to construct a further new greenfield facility in Asia. 


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