Deal signed with Formosa Plastics Group affiliates

LS Electric holds 50%, Nan Ya Plastics 40%, KHI 10%

JV named Nam A Nak Sung

Move targets Taiwan's growing power infrastructure investment

LS Electric signed a joint venture agreement with Nan Ya Plastics and KHI, both affiliates of Taiwan's Formosa Plastics Group, at LS Yongsan Tower in Seoul on Tuesday to strengthen its power business in Taiwan. Pictured from left in the back row: Chen You-sheng, senior vice president of Nan Ya Plastics; Koo Ja-kyun, chairman of LS Electric; Wang Rui-yu, standing committee member (chairman) of Formosa Plastics Group; Chae Dae-seok, chief executive of LS Electric. Front row, from left: Chen Han-chin, vice president of Nan Ya Plastics' power solutions division; Park Woo-bum, head of LS Electric's East Asia division; Park Dong-seop, chief executive of KHI. [LS Electric]
LS Electric signed a joint venture agreement with Nan Ya Plastics and KHI, both affiliates of Taiwan's Formosa Plastics Group, at LS Yongsan Tower in Seoul on Tuesday to strengthen its power business in Taiwan. Pictured from left in the back row: Chen You-sheng, senior vice president of Nan Ya Plastics; Koo Ja-kyun, chairman of LS Electric; Wang Rui-yu, standing committee member (chairman) of Formosa Plastics Group; Chae Dae-seok, chief executive of LS Electric. Front row, from left: Chen Han-chin, vice president of Nan Ya Plastics' power solutions division; Park Woo-bum, head of LS Electric's East Asia division; Park Dong-seop, chief executive of KHI. [LS Electric]

LS Electric announced Wednesday that it signed a joint venture agreement with Nan Ya Plastics and KHI — both affiliates of Taiwan's Formosa Plastics Group — at LS Yongsan Tower in Seoul on Tuesday to lead its power business operations in Taiwan.

The agreement builds on an MOU the two companies signed in March last year on cooperation in eco-friendly power equipment and energy efficiency solutions in Taiwan. Through the joint venture, the partners will expand their collaboration beyond power equipment supply into engineering and project contracting.

The signing ceremony was attended by LS Electric Chairman Koo Ja-kyun, Chief Executive Chae Dae-seok, East Asia Division Head Park Woo-bum, Formosa Plastics Group Standing Committee Member Wang Rui-yu, Nan Ya Plastics Senior Vice President Chen You-sheng, Nan Ya Plastics Power Solutions Vice President Chen Han-chin and KHI Chief Executive Park Dong-seop.

LS Electric will hold a 50 percent stake in the joint venture, Nan Ya Plastics 40 percent and KHI 10 percent. The venture will operate under the name Nam A Nak Sung. Nan Ya Plastics is Taiwan's largest petrochemical and electronic materials company and has been expanding its power solutions business from distribution products into ultra-high-voltage transmission equipment and grid stabilization.

KHI was established last year by Formosa Group and KAIST to invest in promising technologies developed by the university and commercialize them jointly. The firm joined the venture after identifying growth potential in the power industry.

The joint venture aims to build the capacity to respond swiftly in Taiwan across the full project cycle — from bidding and design to technical execution. The core strategy is to combine LS Electric's manufacturing and design expertise in power equipment with Nan Ya Plastics' local production base and EPC network to sharpen competitiveness in project contracting.

Taiwan's government is aggressively investing in infrastructure such as eco-friendly power facilities and energy storage systems as part of its carbon neutrality policy, and the related market is expected to grow rapidly. "By leveraging synergies between the two companies, we expect to generate results from Taiwan's power infrastructure contracting business at an early stage," an LS Electric official said.


keg@heraldcorp.com