LS Electric teams up with Formosa Plastics affiliates for Taiwan expansion

LS Electric said Wednesday it will set up a joint venture with two affiliates of Taiwan's Formosa Plastics Group to win power infrastructure projects in Taiwan, expanding beyond its current business of supplying electrical equipment there. The Korean maker of power equipment and automation systems signed the agreement Tuesday with Nan Ya Plastics and KHI at LS Yongsan Tower in Seoul. LS Electric will hold 50 percent of the venture, Nan Ya 40 percent and KHI 10 percent. Nan Ya is a core Formosa affiliate that makes petrochemicals, electronic materials and electronics. It has been building a power solutions business, moving from distribution products into extra-high-voltage transmission equipment and grid stabilization, according to LS Electric. KHI was set up last year with Formosa investment to commercialize technologies developed at the Korea Advanced Institute of Science and Technology, a state-run research university. The venture will first build local capacity to handle bidding, design and technical support for Taiwanese power projects. It will combine LS Electric's manufacturing and