Key Takeaways:
• LS Electric’s Bac Ninh plant is undergoing an expansion to meet rising demand for its power distribution products.
• The new production line will focus on battery control panels (BCPs) and air circuit breakers (ACBs), with increased capacity to meet both local and international market needs.
• The plant’s growth is part of LS Electric’s strategy to boost its ASEAN presence, with a sales target of $300 million by 2030.
• The company aims to establish a research and development center in Hanoi by 2027 to drive innovation.
Expansion to Meet Growing Demand
LS Electric is accelerating its activities at its manufacturing site in Bac Ninh, Vietnam, with strategic plans to boost production capacity in response to rising demand for essential products such as air circuit breakers (ACBs), battery control panels (BCPs), and switchgears. Spanning 30,000 square meters, the Bac Ninh plant has evolved into a central hub for the company’s manufacturing operations, serving both regional and global markets. Specializing in a broad spectrum of power distribution solutions, the facility has already hit its production limit—highlighting the pressing need to expand its infrastructure and operational capabilities to keep pace with client requirements.
Strategic Growth in ASEAN
In a move to strengthen its presence in the ASEAN market, LS Electric is planning a significant expansion at the Bac Ninh site. With the approval of the company’s top management, a new production line will be built on a nearby plot of land, allowing the facility to increase its output and meet the demand from both local and international clients. The strategic expansion is aimed at enhancing LS Electric’s competitive edge in the region, particularly within the booming markets of countries like Saudi Arabia, Kazakhstan, Brazil, and Kenya. By 2025, the company projects its Vietnamese subsidiary’s sales to soar to 200 billion won, a tenfold increase over five years.
Targeting Future Technological Leadership
LS Electric is not only focused on expanding production but also on technological innovation. The company plans to establish a research and development (R&D) center in Hanoi by 2027, designed to serve as a hub for its ASEAN expansion. The R&D center will focus on enhancing product development and strengthening LS Electric’s competitive positioning in the global market. According to Kim Sung-ho, Technical Director of LS Electric Vietnam, design and development are critical to the company’s success. A dedicated team of 60 engineers will drive the innovation efforts, ensuring the company remains at the forefront of the industry.
Workforce Growth and Market Projections
With the plant expansion, the workforce at the Bac Ninh facility is expected to grow from 372 to 400 employees, including a specialized team for R&D. The company’s sales target is ambitious, aiming for annual revenue of $300 million by 2030, with continued growth fueled by the rising demand for its products in both domestic and international markets. The expansion is expected to increase the plant’s production capacity from $40 million to $60 million annually.
As LS Electric continues to strengthen its foothold in Vietnam, it also looks ahead to its broader regional ambitions. The company has already achieved significant success in the local market, holding a 40% market share. By focusing on customer-specific solutions and expanding its product range, LS Electric is positioning itself as a leader in the ASEAN market and beyond.
