Chesapeake, Virginia – LS Greenlink, the U.S. subsidiary of South Korean cable giant LS Cable & System, has officially commenced construction of a state-of-the-art submarine cable manufacturing facility in Chesapeake, Virginia. The $681 million (approximately 1 trillion KRW) investment marks a significant milestone as the largest project of its kind in the United States and the first major manufacturing initiative by a Korean company on American soil since the beginning of the second Trump administration.

The groundbreaking ceremony on Monday was attended by key figures including Chesapeake Mayor Rick West, LS Cable & System CEO Koo Bon-kyu, and Virginia Governor Glenn Youngkin, underscoring the strategic importance of this project for both the company and the region. Mayor West announced that the access road to the plant would be renamed "1 LS Way" in honor of the investment.

Spanning a vast 396,700 square meters (approximately 120 acres) along the Elizabeth River, the manufacturing complex will feature a 70,000 square meter (approximately 753,000 square feet) facility. A key highlight of the infrastructure will be a towering 201-meter (659 feet) Vertical Continuous Vulcanization (VCV) tower, set to be the tallest structure in Virginia and a prominent industrial landmark on the East Coast. This advanced equipment, along with dedicated port facilities on the Elizabeth River, will enable LS Greenlink to handle the entire lifecycle of high-voltage direct current (HVDC) submarine cables, from production to transportation and supply, all in one location. The plant is slated for completion by the third quarter of 2027, with mass production of cables expected to commence in the first quarter of 2028.

LS Cable & System emphasized that this strategic investment directly addresses the growing U.S. focus on supply chain resilience and positions the company as a key player in the global transition towards renewable energy. With limited existing submarine cable production capacity in the United States, this facility will significantly enhance local sourcing capabilities and bolster the stability of the energy infrastructure supply chain. The plant is expected to generate between $600 million and $700 million in annual revenue and achieve double-digit operating profit margins upon completion, while creating over 330 skilled local jobs.

The strategic location in Chesapeake was chosen due to its proximity to burgeoning offshore wind farm developments along the U.S. East Coast and its logistical advantages for maritime transportation, including access to Europe. CEO Koo Bon-kyu also noted the proximity to the largest naval base in the U.S., providing a valuable pool of trained personnel, including retired military veterans.

The project has garnered substantial financial support, including approximately $48 million in subsidies and tax benefits from the state of Virginia. Furthermore, LS Greenlink anticipates receiving $99 million in investment tax credits from the federal government under the Inflation Reduction Act (IRA), bringing the total financial incentives to $147 million (211.3 billion KRW).

Koo Bon-kyu hailed the LS Greenlink plant as a "turning point" for LS Cable & System's ambition to become a global leader in energy infrastructure. "With world-class manufacturing infrastructure," he stated, "we will respond swiftly and efficiently to the surging global demand for submarine cables." He also hinted at potential future expansions based on market demand, referring to the current investment as just the "first page."

Virginia Governor Glenn Youngkin lauded the investment as a "symbol of Virginia's innovation and manufacturing competitiveness," highlighting the Commonwealth's role in the offshore wind industry. Liz Burdock, president and CEO of the Business Network for Offshore Wind, also praised the project as a testament to the global industry's commitment to the U.S. market and its potential to create long-term American jobs.

The U.S. submarine cable market is experiencing significant growth, driven by the increasing demand for reliable internet connectivity, the expansion of cloud computing and streaming services, and substantial investments in offshore wind energy projects. Experts predict the North American submarine cable market to reach over $3.3 billion by 2030, with offshore wind power generation being a key growth driver. LS Greenlink's new facility is strategically positioned to capitalize on this burgeoning market and contribute significantly to the development of a robust and sustainable energy infrastructure in the United States.

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