Korean firm gets financial support for US subsea cable factory

Korean firm gets $99 million boost for US subsea cable factory

South Korean cable manufacturer LS Cable & System has received financial support from the U.S. Department of Energy (DOE) for its high-voltage submarine power cable factory in the U.S.

Source: LS Cable & System

LS GreenLink USA, a wholly-owned subsidiary of LS C&S, plans to build a manufacturing facility to produce high-voltage submarine power cables in the U.S. as a part of the Korean company’s long-term strategic plan for global expansions.

The U.S. DOE awarded LS GreenLink $99 million in investment tax credits under Section 48C of the Inflation Reduction Act of 2022, also known as the Qualifying Advanced Energy Project Credit Program (48C).

“We are honored that the Department of Energy selected LS GreenLink to receive 48C investment tax credits,” said Daniel Ko, Senior Vice President of LS C&S, who heads LS C&S’s Global Submarine Cable System Division.

“The support by the DOE will help LS GreenLink meet the global surge in demand for submarine cables and alleviate the significant supply chain problems in the offshore wind industry in the United States.”

According to Patrick Y. Shim, Managing Director of LS GreenLink, the new manufacturing facility will create many high-quality jobs and bring advanced manufacturing capabilities to support the clean technology industry in the U.S. More details about the project are expected in the coming weeks.

In terms of most recent news coming from LS C&S, the Korean company last month signed a preferred supply agreement for the supply of offshore and onshore cables for Copenhagen Infrastructure Partners’ (CIP) third offshore wind project in Taiwan.