Korean co plans USD-680m submarine cable factory in Virginia

The unit of a major South Korean corporation intends to invest USD 681 million (EUR 630m) to build a high-voltage direct current (HVDC) submarine cable manufacturing facility in Virginia to serve the global offshore wind industry.

In a statement on Tuesday, Virginia governor Glenn Youngkin announced that LS GreenLink USA Inc plans to construct the 750,000-sq-ft facility on about 100 acres of brownfield in the City of Chesapeake, creating over 330 full-time jobs.

LS Greenlink is a subsidiary of power and communication cable and system solutions provider LS Cable & System Ltd (LS C&S), which, in turn, is owned by Korean industrial conglomerate LS Corp (KRX:006260).

“This facility will not only enhance our capability to meet the growing global demands for submarine power cables, but will also position us at the forefront of the industry,” said Bon-Kyu Koo, sresident & CEO of LS C&S.

According to Governor Youngkin’s announcement, the project was secured thanks to a collaboration between the Virginia Economic Development Partnership, the City of Chesapeake, the Hampton Roads Alliance, and the Virginia Maritime Association. The governor himself has approved a USD-13.2-million grant from the Commonwealth’s Opportunity Fund to assist the city with the project. Furthermore, the developer is eligible to receive state benefits from The Port of Virginia Economic and Infrastructure Development Zone Grant Program.

Industry organisation Oceantic Network welcomed the announcement and reminded that last week, another Network member company, Hellenic Cables, reached a final investment decision to buy land for a new cable facility in Baltimore.

“Another day, another offshore wind announcement. Hundreds of millions of dollars and hundreds of long-term jobs are being made possible by the strength of the US offshore wind industry’s momentum and potential. This year we’ve already seen USD 2.2 billion in new manufacturing supply chain investments announced to produce steel, foundations, towers and cables that will supply the US industry for years and create good-paying jobs in places like Hampton, Houston, and the Ohio River valley,” commented Liz Burdock, founder and CEO of Oceantic Network.

(USD 1.0 = EUR 0.925)

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