LS Electric will expand its presence in the ASEAN market with its Bac Ninh plant in Vietnam serving as a central hub of exports. LS Electric announced on Oct. 26 that a full-fledged plant rollout ceremony was held for the Bac Ninh plant at the Yenfong Industrial Complex in Bac Ninh Province, Vietnam.
There were 300 officials in attendance, including LS Electric’s CEO Koo Ja-kyun, Chairperson Nguyen Huong Giang of the Bac Ninh Province People’s Committee, and South Korean Ambassador Oh Young-joo in Hanoi.
The company’s Vietnam subsidiary and factory located in Dong Anh, Hanoi, will be moved to its business complex in Bac Ninh, after which the company will boost its business expansion further. At the new plant in Bac Ninh situated within a 30,000㎡ site, the space specialized for manufacturing will be twice its former plant in Hanoi.
LS Electric is part of the first generation of South Korean companies to enter the Vietnamese market. It started its Vietnam operations in 1997 with the construction of a plant in Dong Anh, Hanoi where it produced power system products for 25 years.
CEO Koo Ja-kyun explained, "In our bid to target the global market in earnest, it is critical to establish a sound localization and regional hub strategy." He added, "The relocation to the new Bac Ninh plant is not merely a change of address from the former plant in Hanoi. It will advance and serve as a key hub for our targeted strategy to achieve expansion in ASEAN market."
With the new plant completed, annual production is expected to increase significantly from USD 25 million to USD 40 million and by 2030, annual production will surpass the USD 100 million mark.
LS Electric has invested around $20 million in the construction of the new business complex and has made the strategic decision to strengthen its position in the Vietnamese electric power market.
LS Electric was the first South Korean electric power company to enter the Vietnamese market in the mid-1990s. Since then, the company was able to build its market share in low-voltage power equipment to over 35%, becoming the top player in the market continuously since 2013.
An official of LS Electric said, "In the market for low-power equipment, we already outperformed global producers from Europe and Japan by becoming the top supplier with the largest market share. With this plant completed, we will be able to solidify our top position in this market. He added, "We will speed up our business expansion in the local market by making robust investments in our business for power systems focused on switchboards and transformers."