LS Cable & System, a prominent Korean cable manufacturer, revealed plans on Wednesday to invest $681 million in constructing the largest submarine cable manufacturing plant in the United States. The new facility, to be located in Chesapeake, Virginia, will be established by LS GreenLink USA, a subsidiary of LS Cable & System. Groundbreaking is set for next year, with operations expected to commence by 2027, creating over 330 jobs in the process.
Strategic Expansion to Meet Growing Market Demands
The centerpiece of the site will be a 200-meter-tall submarine cable manufacturing building, poised to become the tallest of its kind globally. LS Cable & System anticipates that the US submarine cable market will expand at an average rate of 30 percent over the next decade. This investment underscores the company’s strategy to secure a leadership position in this rapidly growing market by establishing a local manufacturing presence.
Significant Government Support for Advanced Energy Projects
The project has attracted substantial financial support from the US government, with LS Cable & System securing approximately $48 million in government subsidies and tax credits. Additionally, LS GreenLink USA received $99 million in advanced energy project tax credits in April under the Inflation Reduction Act, bringing the total government incentives to $147 million. This marks the largest state funding allocation for a global submarine cable manufacturer operating in the US.
“This state-of-the-art facility represents our commitment to pushing the boundaries of technology and engineering,” stated Koo Bon-kyu, CEO of LS Cable & System. “This facility 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.”
