Title | LS Cable & System Commences Construction of Bus Duct and Battery Part Plants in Mexico, to Accelerate Entry into North American Market |
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Date | 2024-08-04 |
Photograph) Attendees of the bus duct plant construction groundbreaking ceremony held at an industrial complex in Corregidora, Queretaro, Mexico, on the 2nd (local time) pose for a photo. From the third from the left: LS EVM Management Director Kim Gi-nam, LS Cable & System CEO Koo Bon-kyu, Queretaro Governor Mauricio Kuri, Secretary of Sustainable Development Marco Del Prete and Corregidora Mayor Adolfo Colin
■ Optimal location with low labor costs and FTA benefits
■ Rapid growth of bus duct business expected based on expansion of AI data center market
LS Cable & System is commencing construction of new plants in Mexico to accelerate its entry into the North American market following a recent decision to build a submarine cable plant in the U.S.
LS Cable & System announced on the 4th that it had commenced construction of two plants to manufacture bus ducts and electric vehicle parts in Mexico on the 2nd (local time).
The plants will be built with a total floor area of 16,800 m2 on a site measuring approximately 126,000 m2 at an industrial complex in Queretaro, central Mexico. Mass production will begin in the second half of 2025.
LS Cable & System plans to develop the plants in Queretaro as a hub for exports to the North American market. Mexico has been evaluated as an optimal location, as it offers the benefits of the U.S.-Mexico-Canada Free Trade Agreement (USMCA) along with lower labor costs.
Bus ducts, which are a large-scale power distribution system, will be supplied to electric vehicle, battery and semiconductor plants and data centers. The Mexican plants will be the fourth bus duct production base of LS Cable & System following the LS Cable & System plants in Gumi, Gyeongsangbuk-do, Korea, and Wuxi, China, and the LS Eco Energy plant in Ho Chi Minh, Vietnam.
LS Cable & System also plans to produce battery parts, and will develop the plants into a key production hub for battery parts along with its Polish plant.
“We will expand business by combining our experiences and technological expertise built up over the years with Mexico’s industrial infrastructure and manufacturing competitiveness,” said a company official. “For the bus duct business in particular, we expect rapid growth based on the expansion of the AI data center market.”