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LS Cable & System to Build Largest Submarine Cable Factory in the U.S.

$721 million investment aims to enhance cable production capacity with significant state and federal support
South Korea
l 006260.KO Mid and Small Cap 2000
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LS Cable & System announced plans to invest approximately 1 trillion won ($721.34 million) to construct the largest submarine cable factory in the United States. The facility will be located on a 396,700 square meter site along the Elizabeth River in Chesapeake, Virginia, and will have a total floor area of 70,000 square meters. Construction is slated to begin in 2025, with completion expected by 2027.

A notable feature of the factory will be a 200-meter tall power cable production tower, the tallest of its kind globally. This significant infrastructure aims to bolster LS Cable & System’s production capabilities to meet growing demands.

The company has secured substantial financial support to facilitate this project. It will receive approximately $48 million in subsidies and tax benefits from the state government, alongside $99 million in support from the Department of Energy (DOE) under the Inflation Reduction Act (IRA). This totals $147 million in aid, marking the largest support package awarded to any global cable company operating in the U.S.

The new factory is expected to accelerate LS Marine Solutions’ construction of large cable installation vessels and expand LS Eco Energy’s submarine projects in Europe. This investment underscores LS Cable & System’s commitment to enhancing its global production network and meeting the increasing demand for advanced submarine cables.

 

 

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