Ex-Im Bank Funds LS Cable U.S. Factory

The Export-Import Bank of Korea has pledged 222 million U.S. dollars in financing for LS Cable & System's newly constructed submarine cable factory in Chesapeake, Virginia. The Korean firm plans to invest 1 trillion won in total to establish the largest submarine cable production base in the United States. Scheduled for completion by the second half of next year, the factory will produce 500 kilometers of high-voltage direct current (HVDC) submarine cables annually.

This financial support aims to help LS Cable & System secure a dominant position in the North American cable supply chain and expand into the European offshore wind market. HVDC submarine cables, which transmit substantial electricity amounts between countries or between islands and the mainland with minimal loss, are vital infrastructure for offshore wind power.

The offshore wind power sector is experiencing a surge in demand, driven by the global push for carbon neutrality. As a result, the importance of power infrastructure in the AI era is growing, and related market expansion is anticipated. The Export-Import Bank of Korea has employed its "AI Grand Transformation (AX) Special Program," introduced earlier this year, to provide this financing.

The program offers preferential interest rates and allocates 22 trillion won over five years to bolster the global competitiveness of the AI industry.

A bank official emphasized the significance of power infrastructure in the AI era, stating that domestic cable companies will be supported through this preferential financing to secure technological leadership. The submarine cables manufactured at the facility will be supplied not only within the United States but also to large-scale offshore wind farms in Europe.