 |
LS Electric Cheongju Smart Factory View. (Photo=LS Electric) |
[Alpha Biz= Reporter Kim Jisun] LS Electric will acquire the domestic transformer manufacturing company KOC Electric for approximately 60 billion KRW. This investment is made in consideration of the increasing demand for transformers driven by the artificial intelligence (AI) boom. On the 23rd, LS Electric held a board meeting and decided to purchase a 51% stake in KOC Electric, with a total acquisition amount of 59.2 billion KRW. LS Electric plans to fund the acquisition by selling some of its treasury shares to LS Corporation, without relying on external borrowing.
Founded in 1979, KOC Electric is a comprehensive transformer manufacturer that produces ultra-high voltage transformers as well as mold, dry-type, and oil-immersed distribution transformers. The company has operations in Busan and Ulsan. It is the only small and medium-sized enterprise in Korea equipped with the technology and facilities for 154kV transformers. KOC Electric is one of the top five companies in Korea supplying ultra-high voltage transformers to Korea Electric Power Corporation (KEPCO).
In the specialized power equipment sector, KOC Electric holds the top position domestically for ship-specific transformers, serving major domestic shipyards and numerous international shipbuilding companies. Last year, the company recorded sales of 95.3 billion KRW. With the growing demand for energy infrastructure in regions such as North America and the Middle East, there is an increasing need to expand production capacity for ultra-high voltage transformers.
With the acquisition of KOC Electric, LS Electric plans to more than double its production capacity for ultra-high voltage transformers by the end of next year.
On the 21st, LS Electric announced its intention to expand the ultra-high voltage transformer production capacity at its Busan plant, which currently generates annual sales of 200 billion KRW, to 400 billion KRW by September next year through facility investments.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
