[Alpha Biz= Kim Jisun] Essex Solutions, a U.S.-based cable company under LS Group, announced plans to increase production capacity at its North American and European plants by 143% and 36%, respectively, by 2030.
The expansion aims to meet the growing demand for specialty transformer winding wires—premium insulated wires used in transformers. According to LS Group, orders for these specialty winding wires have surged due to the rapid increase in AI data centers and the rising demand for transformer replacements in the U.S.
Essex Solutions has recorded an average annual revenue growth of 11% in North America and 8% in Europe over the past four years, driven by specialty winding wire orders. In 2023, the company generated approximately $129 million (about KRW 190 billion) in revenue. By 2028, it plans to expand its market share for specialty winding wires from 19% to 50% in North America and from 28% to 35% in Europe.
The transformer winding wire industry typically secures orders in 3 to 6-month cycles, but supply shortages have intensified, with delivery lead times now exceeding two years.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
