LS ELECTRIC is expected to gain momentum in its efforts to expand its North American business after securing tax incentive support from a local public agency for a production base expansion project underway in Utah.
LS ELECTRIC said on March 18 that its U.S.-based switchgear manufacturing subsidiary, MCM Engineering II, located in Iron County, Utah, has received approval for tax incentives from the Utah Inland Port Authority, a state-affiliated economic agency.
The incentive allows the company to receive up to a 30% reduction on increases in property taxes generated by the expansion project over the next 25 years.
LS ELECTRIC plans to invest $168 million to triple MCM Engineering II’s switchgear production capacity. The company will expand the current facility from about 142,300 square feet to approximately 853,900 square feet—about six times its existing size—and build three additional production buildings by 2030.
MCM Engineering II is a local switchgear manufacturer that LS ELECTRIC acquired in 2022 for $6.3 million.
LS ELECTRIC plans to expand its North American operations by establishing MCM Engineering II in Utah and its Bastrop, Texas campus as two key production hubs. By 2030, the company aims to invest a total of $240 million across its North American production bases to build a localized value chain encompassing sales, design, manufacturing and services.
The company also plans to establish new business hubs in Dallas, Texas, and Atlanta, Georgia, both considered strategic regions in the United States.
Within the first quarter of this year, LS ELECTRIC plans to open a local sales and service office in Dallas, followed by another business hub in Atlanta later this year, as part of its strategy to strengthen localization and deliver differentiated customer services.
LS ELECTRIC is expected to further accelerate its localization strategy by securing offices in strategic regions alongside key business hubs, including its Chicago subsidiary and Los Angeles West Coast office.
“Utah, with its strong workforce, infrastructure and business-friendly regulatory environment, is a highly competitive region for LS ELECTRIC to continue expanding its advanced switchgear manufacturing capabilities,” a company official said. “Through this campus expansion project, we will further strengthen our responsiveness to the North American market and accelerate growth in our global power infrastructure business.”