LS Electric Expands Local Power Solutions Business in Taiwan With Petrochemical Group
TECHWORLD ·
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LS Electric has established a joint venture with companies affiliated with Formosa Plastics Group to expand its local power business in Taiwan.
LS Electric signed an agreement on the 6th to set up the JV with Nan Ya Plastics and KHI in Taiwan, with ownership split among LS Electric at 50%, Nan Ya Plastics at 40%, and KHI at 10%.
The joint venture is named Nan Ya Lexing (南亞樂星), and it plans to respond quickly on the ground in Taiwan's power business, from orders to design and technical response.
LS Electric has established a joint venture with companies affiliated with Formosa Plastics Group to expand its local power business in Taiwan. On the 6th, LS Electric signed an agreement to set up the JV with Nan Ya Plastics and KHI in Taiwan. The parties to the agreement are LS Electric, Nan Ya Plastics in Taiwan, and KHI.
The JV will play a leading role in Taiwan's local power business. The ownership split is 50% for LS Electric, 40% for Nan Ya Plastics, and 10% for KHI. The joint venture is named Nan Ya Lexing (南亞樂星).
Through the establishment of this joint venture, LS Electric is moving to expand its local business scope in Taiwan. The expansion target is a shift from Device-centered business to order-driven business. This JV lays the groundwork for expanding the company's existing Device-centered business into the order-based power solutions segment.
Nan Ya Plastics is an affiliate of Formosa Plastics Group and one of the group's core subsidiaries. Its business areas include petrochemicals, electronic materials, and electronics products. Nan Ya Plastics has recently been fostering its power solutions business, expanding from existing distribution products into extra-high-voltage transmission facilities and grid stabilization.
KHI is an investment subsidiary of Formosa Plastics Group. It was established last year to invest in promising KAIST research and development technologies for the Formosa Group and to commercialize them jointly. As a result, the JV partners are positioned both to expand power solutions and to commercialize technologies.
KHI decided to invest in the joint venture after taking note of LS Electric's business competitiveness and growth potential in the global power industry.
The joint venture plans to first secure the capability to respond quickly on the ground in Taiwan's power business, from orders to design and technical response. It also aims to prioritize combining LS Electric's power equipment manufacturing and design capabilities with Nan Ya Plastics' local manufacturing and production base and EPC network.
The goal of this combination is to improve order competitiveness. LS Electric sees its existing Taiwan business as remaining at the level of power equipment supply.
LS Electric expects the joint venture to combine engineering capabilities with its Taiwan business and upgrade that business to an order-based model. It also expects to generate early results in Taiwan's power infrastructure order business by leveraging the synergy of both companies' capabilities.
Source: TECHWORLD · Lee Kwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407843
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Source: TECHWORLD
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