LS Electric to Expand Utah Production Base Sixfold in the US...Local Incentives Approved

Tax Reduction Approved for MCM Engineering II Expansion Project

$168 Million Investment Planned by 2030

New Business Bases to Be Established in Dallas and Atlanta

LS Electric's production base expansion project in Utah, United States, which is part of the company's efforts to scale up its North American operations, has been selected to receive incentive support from a local public agency.

On March 18, LS Electric announced that its distribution panel manufacturing subsidiary, MCM Engineering II, located in Iron County, Utah, has been approved for tax reduction incentives by the Utah Inland Port Authority (UIPA), an economic agency under the Utah state government. The key point of this incentive is that up to 30% of the increase in property taxes resulting from business expansion over the next 25 years will be reduced.

LS Electric plans to invest a total of 168 million dollars (approximately 250 billion won) to triple the distribution panel production capacity of MCM Engineering II. The company will expand the factory, currently 13,223 square meters (about 4,000 pyeong), to 79,338 square meters (about 24,000 pyeong), a six-fold increase, and plans to add three new production buildings by 2030.

MCM Engineering II is a local distribution panel manufacturing company that LS Electric acquired in 2022 through an investment of 6.3 million dollars (about 7.7 billion won).

LS Electric announced on the 18th that its American distribution panel manufacturing subsidiary, MCM Engineering II, has received approval for tax reduction incentives from the Utah state government. The photo shows the factory view of MCM Engineering II. LS Electric.

LS Electric plans to use MCM Engineering II in Utah and the Bastrop campus in Texas as its two main production bases to fully scale up its North American business. By 2030, the company aims to invest a total of 240 million dollars (about 350 billion won) in production bases across North America to establish a local value chain encompassing sales, engineering, production, and service.

LS Electric will also establish new business bases in strategic locations such as Dallas, Texas, and Atlanta, Georgia.

Within the first quarter of this year, the company plans to set up a local sales and service office in Dallas, Texas, and to add another business base in Atlanta, Georgia by the end of the year, pursuing thorough localization and providing differentiated customer service.

LS Electric announced on the 18th that its American distribution panel manufacturing subsidiary, MCM Engineering II, has received tax reduction incentives from the Utah state government. The photo shows Koo Ja-kyun, Chairman of LS Electric (center), and employees of MCM Engineering II posing for a commemorative photo in front of the MCM Engineering II factory. LS Electric. Photo by LS Electric.

It is expected that LS Electric will accelerate its localization strategy by securing offices in strategic regions, in addition to its key business bases such as the Chicago branch and the LA West office.

An LS Electric official stated, "Utah, with its excellent talent pool, infrastructure, and business-friendly regulatory environment, is a highly competitive region for LS Electric to continuously strengthen its advanced distribution panel manufacturing capabilities. Through this campus expansion project, we will further enhance our responsiveness in the North American market and accelerate the growth of our global power infrastructure business."

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