Dive Brief:
- South Korea-based LS Cable & System is planning to spend an additional $689 million for a manufacturing campus in Chesapeake, Virginia, Gov. Glenn Youngkin announced Friday. The company expects to break ground on the project in 2026.
- The project will be initiated through three of the communication cable and system company’s subsidiaries, including LS Greenlink USA, and will create 430 jobs.
- Additionally, the manufacturing complex will establish a domestic supply chain for magnetic copper wire and rare earth magnets to bypass what the governor’s officer described as a “monopoly of Chinese suppliers.”
Dive Insight:
The site will feature advanced manufacturing capabilities through three business lines: rod production using recycled and smelted copper; magnet wire manufacturing for automotive and industrial markets; and rare-earth magnet production for electric motors and weapon systems, including Lockheed Martin and Raytheon’s Javelin missile and the F-35 fighter jet.
“This investment represents an exciting step in our continuing growth in the United States,” Bon-Kyu Koo, president and CEO of LS Cable & System, said in a statement. “We’re not only expanding our manufacturing capabilities, we’re strengthening the U.S. domestic supply chains and supporting America’s leadership in energy and technology.”
The latest investment builds on the company’s initial $680 million announcement to build a high-voltage direct current submarine cable manufacturing and port facility in Chesapeake through its subsidiary LS Greenlink USA. That project broke ground in April.
The first phase of construction for LS Greenlink USA’s facility is expected to be complete by the third quarter of 2027. The site is anticipated to be fully operational in Q1 of 2028, but the company has subsequent phases planned to expand the facility’s production capacity and technological capabilities as global infrastructure requirements develop.
Youngkin approved a $7.3 million grant for LS Cable’s new project as well as a performance-based grant of $1.5 million, according to the Virginia governor’s press release. The company is also eligible for the Port of Virginia’s economic and infrastructure development grant program.
Additionally, the Virginia Talent Accelerator program will support LS Cable’s job creation. The program, developed by the Virginia Economic Development Partnership, works with the state’s community college system to provide training and recruitment opportunities customized to a company’s business operations, equipment standards and culture. The program's services are free to new and expanding companies as part of a job-creation incentive.
