LS Cable & System is investing 230 billion KRW (approximately 172.5 million USD) in its Mexican subsidiary, LSCMX (LS Cable & System Mexico), to establish a comprehensive production base for power infrastructure and mobility components targeting the North American market.
On Thursday, LS Cable announced a 227.7 billion KRW (approximately 170.8 million USD) investment in its manufacturing facility in Querétaro, central Mexico. The company stated that this decision aims to localize its bus duct business and expand its automotive wire operations.
With this investment, LS Cable plans to transform LSCMX from a simple production site into a North American integrated forward base, merging energy and mobility operations. To achieve this, the company will significantly expand its existing busduct facilities and construct a new automotive wire factory.
To address the booming North American AI data center market, LS Cable is making a substantial investment in busduct production facilities. By maximizing production capacity, the company aims to create an optimized supply chain that meets the infrastructure expansion needs of global tech giants.
Furthermore, LS Cable will establish a new large-scale production line for automotive wires, broadening its reach into the mobility sector. The company plans to offer a comprehensive lineup, from internal combustion engine wires to high-voltage cables for electric vehicles (EVs), to meet the localization demands of North American automakers.
Querétaro’s excellent logistics infrastructure and proximity to global automakers make it an ideal location for LS Cable to improve its access to the North American market. By localizing key processes, the company aims to meet the tariff-free requirements of the United States-Mexico-Canada Agreement (USMCA) and adapt to changing trade environments, including rising protectionism.
Once completed, this investment will allow LS Cable to create an optimized North American production system that links its underwater cable factory, LS GreenLink in Virginia, to its Mexican subsidiary. The company plans to solidify its position in the North American market by leveraging high-value products from the U.S. and cost-competitive products from Mexico.
An LS Cable spokesperson stated that LSCMX will serve as a strategic hub designed to maximize synergy between the company’s energy and mobility businesses. The spokesperson added that by optimizing its North American production base, LS Cable aims to become a key partner for global technology companies and the automotive industry.
The investment is expected to strengthen LS Cable’s competitive edge in the North American market, positioning the company to capitalize on growing demand for advanced cable solutions in both the tech and automotive sectors.