LS Eco Energy’s Vietnamese subsidiary, LS-VINA, has secured crucial certifications for participating in U.S. power grid projects, paving the way for its entry into the North American market. The company is strategically targeting the surging demand for transmission infrastructure in the U.S., driven by the need to replace aging power grids and expand artificial intelligence (AI) data centers.
LS Eco Energy announced on Thursday that LS-VINA has obtained quality certification for 230kV ultra-high voltage cables from KEMA, a globally recognized testing organization based in the Netherlands. This certification meets the CS9 standard regulations for U.S. power projects, enabling LS-VINA to qualify for participation in major power infrastructure projects across the U.S.
The North American market, particularly the U.S., is currently experiencing accelerated investments in power grid modernization. Industry analysts project that the North American transmission infrastructure market will reach approximately 7.9 billion USD by 2027. Notably, the ultra-high voltage cable sector is undergoing a market shift, favoring global suppliers with robust production capabilities due to high technological barriers to entry.
Drawing on its experience in European and Asian markets, LS-VINA has been bolstering its competitiveness in ultra-high voltage cables. With this new certification, the company aims to expand its business scope, positioning itself as a global production hub capable of serving the North American market.
LS Eco Energy is strategically shifting its business structure to focus on high-value products, such as ultra-high voltage cables, to enhance profitability. The company currently boasts an impressive operating profit margin of about 7%, significantly outperforming the domestic wire industry average of 3-4%. This robust growth trajectory continued into the first quarter of 2023, when the company achieved record-breaking results.
Lee Sang-ho, Chief Executive Officer (CEO) of LS Eco Energy, stated that this certification marks a pivotal moment for LS Eco Energy, propelling us towards becoming a global player capable of meeting North American market demands. It’s committed to continuously strengthening the market strategy in alignment with the expanding trend of global power grid investments.