LS Electric, GS Global, Taekwang Pursue North American Expansion and Capacity Increases with Aggressive Investments

Three major affiliates are adopting an aggressive management strategy, recently launching initiatives to target the North American market and expand production capacity. LS Electric has obtained testing qualification from the Canadian Standards Association (CSA) to accelerate its entry into the North American power business, while GS Global has opened a trade base in Houston. Taekwang Industrial is pouring significant capital into expanding its specialty fiber plant.

Investment in North American power infrastructure is rapidly increasing, driven by the expansion of AI data centers, the integration of renewable energy, and the replacement of aging power grids. LS Electric plans to shorten certification lead times by incorporating North American standards from the early stages of development, aiming to strengthen competitiveness for high-value-added orders in the data center, wide-area power grid, and industrial power equipment markets.

GS Global opened a new branch in Houston, Texas, on the 11th (local time) to target the North American energy and infrastructure markets. The opening ceremony was attended by the Consul General in Houston, as well as representatives from major domestic and international companies, including POSCO, Hyundai Steel, and Hanwha Ocean. The Houston branch plans to expand its business scope beyond steel import and sales to support project-based steel orders and supply energy, chemical, and shipbuilding materials. The strategy is to maximize collaboration synergy between nearby domestic steelmakers like Hyundai Steel and Dongkuk Steel, as well as local EPC firms and processing companies. This move expands the company’s U.S. operations, which were previously centered on its LA corporation, to respond to strengthening protectionism and global supply chain restructuring.

With the opening of the Houston branch, GS Global’s global network has expanded to 23 locations in 16 countries. The company plans to focus on establishing the local network and stabilizing operations in the second half of this year, with a goal to fully ramp up order support and new business development starting in 2027.

Taekwang Industrial announced on the 13th that it will invest 150 billion won to expand its Modacrylic production line at its Ulsan plant. Production capacity will more than double from the current 12,000 tons per year to 26,000 tons. The new facility will undergo pilot runs and commence commercial production in June 2028.

Modacrylic is a specialty fiber used in wigs and flame-retardant materials, and Taekwang Industrial is the second company in the world to commercialize it following Japan’s Kaneka. While demand is steadily growing due to population growth in the African market and demand for premium fashion materials, global supply remains an oligopoly dominated by a few firms. The company aims to establish a duopoly by leveraging its ‘Modabon’ brand to increase its market share from 19% in 2026 to 33% by 2030.

This investment by Taekwang Industrial is part of a business restructuring effort amidst worsening conditions in the petrochemical and fiber industries. The company has been streamlining non-core businesses and focusing its capabilities on specialty materials businesses with proven profitability, following capacity expansions for aramid and caustic soda.