LS Electric Establishes JV with Taiwan's Largest Petrochemical Company to Target Local Power Market

LS Electric to Hold 50% Stake in JV
Shifting From Standalone Supply to Order-Based Projects

LS Electric is partnering with Formosa Plastics Group, Taiwan's largest petrochemical company, to establish a joint venture (JV) aimed at penetrating the local power market. The company plans to expand its Taiwan business, which has so far focused on supplying power equipment, into order-based projects centered on design and engineering.

LS Electric announced on the 6th that it signed a joint venture (JV) establishment agreement to strengthen the local power business in Taiwan with Nanya Plastic, a subsidiary of Taiwan's Formosa Plastics Group, and KHI at LS Yongsan Tower in Seoul. The photo shows Ja-kyun Koo, Chairman of LS Electric (second from left in the back row), Dae-seok Chae, CEO of LS Electric (fourth from left in the back row), Woobum Park, Head of East Asia Division at LS Electric (center in the front row), Leyi Wang, Executive Committee Member (Chairman) of Formosa Plastics Group (third from left in the back row), You-sheng Chen, Senior Vice President of Nanya Plastic (first from left in the back row), Han-chin Chen, Vice President of Power Solutions Division at Nanya Plastic (first from left in the front row), and Dongseop Park, CEO of KHI (third from left in the front row). LS Electric. Photo by LS Electric

On October 6, LS Electric announced that it had signed an agreement at LS Yongsan Tower in Yongsan-gu, Seoul to establish a joint venture with Nanya Plastics, a subsidiary of Formosa Plastics Group, and KHI, which will lead the local power business in Taiwan. The new JV will be named “Namanakseong.” Ownership will be split with LS Electric holding 50%, Nanya Plastics 40%, and KHI 10%.

The signing ceremony was attended by Koo Ja-kyun, Chairman of LS Electric, Chae Dae-seok, CEO of LS Electric, Park Woo-beom, Head of East Asia Division at LS Electric, as well as Wang Leiwei, Executive Director (Chairman) of Formosa Plastics Group, Chen You-sheng, Senior Vice President of Nanya Plastics, Chen Han-qin, Vice President of Power Solutions at Nanya Plastics, and Park Dong-seop, CEO of KHI.

Nanya Plastics, a core company of Formosa Plastics Group, is Taiwan's largest petrochemical and electronics materials/products company. In recent years, it has expanded its power solutions business from traditional distribution products to ultra-high voltage transmission facilities and power grid stabilization. KHI is a subsidiary invested by Formosa Plastics Group. Last year, it was established so that Formosa Group could invest in promising technologies developed by KAIST (Korea Advanced Institute of Science and Technology) and commercialize them with both parties’ cooperation. KHI decided to invest in this JV, recognizing LS Electric’s business competitiveness and growth potential in the global power industry.

The joint venture plans to quickly build capabilities to win power business orders in Taiwan and to respond locally with design and technical support. The core strategy is to integrate LS Electric’s manufacturing and design technology with Nanya Plastics’ local manufacturing/production base and EPC (engineering, procurement, and construction) network to strengthen competitive bidding capabilities.

This contract is a materialization of the memorandum of understanding (MOU) signed in March last year between LS Electric and Nanya Plastics, on cooperation for eco-friendly power equipment and energy efficiency solutions in Taiwan. The two companies have so far focused on cooperation in supplying power equipment. Through the establishment of this JV, they will broaden their collaboration to engineering and order-based projects.

The Taiwanese government is pursuing a strong carbon neutrality policy, aiming to increase the share of renewable energy to as much as 70% of the total energy mix by 2050. As a result, investments are accelerating in eco-friendly power facilities, energy storage systems (ESS), and digital-based smart power grid infrastructure, with the related market expected to experience rapid growth.

An LS Electric official stated, "Our Taiwan business, which has so far been limited to supplying power equipment, will be upgraded to include order-based projects with combined engineering capabilities through this joint venture. We expect that the synergy between our companies will allow us to generate results in Taiwan’s power infrastructure order business at an early stage."

This content was produced with the assistance of AI translation services.