LS Electric forms joint venture for power infrastructure in Taiwan

LS Electric has signed an agreement with Nanya Plastics and KHI, affiliates of Formosa Plastics Group, to establish a joint venture for power infrastructure in Taiwan.

The signing ceremony, held Tuesday at LS Yongsan Tower in Seoul, was attended by LS Electric Chairman Koo Ja-kyun, Formosa Plastics Group Chairman Wang Jui-yu, Nanya Plastics Senior Executive Vice President Chen Yu-sheng and KHI CEO Park Dong-sub.

LS Electric will hold a 50 percent stake in the venture, with Nanya Plastics and KHI holding 40 percent and 10 percent, respectively. The joint venture will be named Namanakseong.

Nanya Plastics is an affiliate of Formosa Plastics Group and Taiwan’s largest petrochemical, electronic materials and electronics company. It has expanded its power solutions business from distribution equipment to ultra-high-voltage transmission equipment and power grid stabilization.

KHI was established last year by Formosa Plastics Group to commercialize promising technologies developed through research with KAIST. It joined the venture based on LS Electric’s business capabilities and growth potential in the global power industry.

The venture will handle power project orders, engineering and technical support in Taiwan. It will combine LS Electric’s power equipment manufacturing and design capabilities with Nanya Plastics’ local manufacturing base and EPC network.

The agreement follows a momentum of understanding signed by LS Electric and Nanya Plastics in March last year on eco-friendly power equipment and energy efficiency solutions in Taiwan. Their cooperation will expand from power equipment supply to engineering and project-based business.

Taiwan aims to increase renewable energy’s share of its total power generation to as much as 70 percent by 2050 under its carbon-neutrality policy, driving investment in power infrastructure.

“Through the joint venture, our Taiwan business will expand from power equipment supply to project-based business by combining engineering capabilities,” an LS Electric official said. “We expect to generate early results in Taiwan’s power infrastructure projects.”