LS Group announced plans to construct the world’s largest High Voltage Direct Current (HVDC) cable factory in the UK, marking a significant expansion of its presence in Europe. This strategic move follows LS’s earlier expansions in the United States and Vietnam.
On May 29, industry sources revealed that LS will establish a joint venture with the UK’s Global Interconnection Group (GIG) to produce HVDC cables. The new factory will be located on an 11.7-acre site near the Port of Tyne in northeastern England, under a long-term lease agreement.
The investment for this project is estimated at £923 million. The factory will primarily focus on producing HVDC submarine cables, essential for offshore wind power grids. The facility is expected to receive its license by the end of this year, with operations commencing in 2027 after certification by the International Council for Grid Technology (CIGRE).
The demand for HVDC cables is rising, particularly in the United States and Europe, which are at the forefront of renewable energy initiatives. According to market research firm Brainy Insights, the global HVDC cable market is projected to grow from $14.11 billion in 2023 to $20.96 billion by 2033.
LS Group is experiencing significant growth in its core businesses, driven by the increasing importance of power infrastructure amid the rise of the artificial intelligence (AI) industry. This new venture is set to enhance LS’s role in the global energy sector, aligning with the expanding needs for sustainable energy solutions.
By establishing this factory, LS aims to support the burgeoning offshore wind power industry in Europe and contribute to the global transition towards renewable energy. The initiative not only underscores LS’s commitment to advancing power infrastructure but also positions the company as a key player in the HVDC cable market.
