Export-Import Bank of Korea Provides KRW 300 Billion Financing to LS Cable's U.S. Submarine Cable Plant

en.Wedoany.com Reported - On August 24, the Export-Import Bank of Korea confirmed it will provide KRW 300 billion (approximately USD 220 million) in financing to LS Cable & System's submarine cable plant in Chesapeake, Virginia, U.S., to support the company's establishment of a localized submarine cable production base in North America. The plant is being built by LS GreenLink USA, a wholly owned subsidiary of LS Cable & System, and will primarily produce high-voltage direct current (HVDC) submarine cables.

Phase 1 of the project involves an investment of over USD 680 million and is located along the Elizabeth River in Chesapeake, covering approximately 96.6 acres. Construction began in April 2025, and the plant has now entered the construction phase for core production facilities. The VCV (Vertical Continuous Vulcanization) tower, used for high-voltage cable insulation production, began construction in June 2026. The tower stands approximately 201 meters tall and, once completed, will be one of the tallest structures in Virginia, serving a critical role in the manufacturing process for next-generation high-voltage submarine cables.

According to the current construction plan, the main plant construction is expected to be completed in the second half of 2027, with commercial production scheduled to begin in the first quarter of 2028. According to the latest data from the Export-Import Bank of Korea, once the project reaches stable production capacity, the annual production capacity for HVDC submarine cables is expected to reach approximately 500 kilometers, with products primarily supplying the North American power grid and offshore wind projects, while also targeting the European market.

The LS GreenLink plant also includes supporting port and dock facilities, enabling direct loading and shipment of large submarine cables and reducing long-distance land transportation. Phase 1 of the project is expected to create more than 330 jobs. Virginia has previously allocated USD 13.2 million in support for the project through the Commonwealth's Opportunity Fund, and at the federal level, LS GreenLink was awarded approximately USD 99.1 million in investment tax credits under Section 48C of the Inflation Reduction Act for advanced energy projects. With this additional KRW 300 billion in financing from Korea's policy financial institution, the project's funding support system now spans multiple levels, including Korean, U.S. federal, and state sources.

This financing milestone comes amid LS Cable & System's continued expansion of its U.S. manufacturing footprint. In addition to the LS GreenLink submarine cable plant, the company confirmed in late 2025 a new investment of USD 689 million in Chesapeake to further develop power cable manufacturing facilities. This project is being implemented separately from the LS GreenLink Phase 1 submarine cable plant, but together they form the company's manufacturing base in the U.S. power grid equipment sector.

LS Cable & System has already achieved commercial capability in 525kV-class HVDC submarine and land cables and has participated in major cross-sea transmission projects in Europe, including those with TenneT. With the growth of AI data center loads in the U.S., aging grid infrastructure upgrades, and the advancement of offshore wind projects, demand for HVDC cables for long-distance, high-capacity power transmission continues to rise. Once the Virginia plant begins operations, LS Cable & System will establish large-scale local HVDC submarine cable manufacturing capability in North America for the first time, forming a cross-regional supply network with its existing production and submarine cable laying systems in Korea.