LS Cable & System (LS C&S), one of South Korea’s leading cable manufacturers, recently announced a significant investment of $682.7 million to construct the largest submarine cable manufacturing facility in the United States. This bold move promises to bolster the company’s position in a rapidly expanding industry and underscores its commitment to renewable energy advancements.
A Massive Project in Virginia
The new facility will be constructed by LS C&S’s U.S. subsidiary, LS GreenLink, on an expansive 397,000-square-meter (98-acre) site in Chesapeake, Virginia, near the strategically important Port of Virginia. Envisioned as a state-of-the-art production site, the facility will specialize in the creation of high-voltage subsea cables, which are essential for the expanding offshore wind energy market.
One of the facility’s most remarkable features will be a 200-meter (656-foot) vertical continuous vulcanization (VCV) tower. This will be the tallest cable production tower in the world, enabling efficient manufacturing of high-voltage submarine cables.
“High-voltage submarine cables are substantial in size, and vertical production is necessary to ensure their length and structural integrity,” an LS C&S spokesperson explained.
Timeline and Job Creation
Construction of the new plant is expected to commence in 2025, with completion targeted for 2027. Once fully operational, the facility is anticipated to create 338 new jobs, further contributing to the local economy in Virginia.
Government Incentives and Support
The project has received strong support from the U.S. government. LS Cable & System will benefit from $48 million in state government incentives and tax credits. Additionally, the company will receive $99 million from the U.S. Department of Energy, as part of the federal Inflation Reduction Act. This combined financial assistance reaches $147 million—marking the largest grant awarded to any cable manufacturer in the U.S. to date.
The Growing Submarine Cable Market
The global demand for submarine cables continues to rise, largely driven by the transition to renewable energy sources such as offshore wind farms. Submarine cables, which are roughly three times more expensive than standard cables, are crucial for transmitting power generated offshore back to mainland electrical grids.
The subsea cable market, valued at $2.3 billion in 2021, is projected to nearly double to $4.5 billion by 2025. This significant growth underscores the importance of LS C&S’s investment in meeting future energy needs.
Competition in the U.S. Market
LS Cable & System is not the only player recognizing the importance of submarine cables. Competitors like France’s Nexans and Italy’s Prysmian are also making strides in this market. Nexans has recently adapted its South Carolina plant to produce subsea cables, while Prysmian is building its own facility in Massachusetts.
Pioneering the Future of Energy Transmission
Koo Bon-kyu, President and CEO of LS Cable & System, highlighted the significance of this new facility, stating, “This state-of-the-art facility represents our commitment to pushing the boundaries of technology and engineering. It will not only enhance our capability to meet the growing global demands for submarine power cables but will also position us at the forefront of the industry.”
As the world transitions towards renewable energy, this innovative facility places LS C&S at the heart of a critical transformation. The company’s investment reflects a forward-thinking approach to sustainability, technological progress, and global leadership in submarine cable production.
The announcement of LS Cable & System’s new submarine cable manufacturing facility is a significant milestone for the renewable energy sector. With this investment, Virginia takes a step closer to becoming a hub for energy infrastructure, and LS C&S solidifies its role as a key player in the global high-voltage cable market.
