Dive Brief:
- A subsidiary of South Korea-based LS Cable & System will spend over $680 million to build a high-voltage direct current submarine cable manufacturing facility in Chesapeake, Virginia, the company said in a July 9 press release.
- LS GreenLink USA’s 750,000-square-foot facility will create over 330 jobs with annual salaries averaging around $76,000, according to a Chesapeake Economic Development release.
- The Chesapeake plant will address the demand for submarine power cables used in the global supply chain for offshore wind farms and renewable energy projects, the economic development organization said. Operations are expected to begin in 2027.
Dive Insight:
The Chesapeake project has already begun receiving federal funds as it supports the clean technology industry. In April, the Department of Energy awarded LS GreenLink USA an estimated $99.1 million in investment tax credits under Section 48C of the Inflation Reduction Act.
LS Greenlink USA worked with its site selection advisor Evergreen Location Strategies looking at several possible locations in the U.S. for over two years, Managing Director Patrick Shim told Manufacturing Dive in an email.
“At the end the two final sites were both in the Hampton Roads region of Virginia,” Shim said. “We had over 30 different requirements for our site, and Chesapeake site ended up being the best option for us.”
LS Greenlink USA’s facility will be located at the Deep Water Terminal near the Ports of Virginia with access to interstate highways, according to the terminal website. That location will significantly increase ship traffic to the Virginia port, David White, executive director of the Virginia Maritime Association, said in a statement. Direct current subsea cables are used as power transmissions and can carry power between countries and offshore wind farms.
“Our staff diligently worked with our economic development partners and the LS team to locate the best site on the Eastern Seaboard for their manufacturing operations to support the growing offshore wind industry, taking advantage of Virginia's deep channels, established supply chain, and skilled workforce,” White said.
Regarding its workforce, LS Greenlink also chose the location for its particular access to military veterans, Shim said. Naval Station Norfolk, Naval Air Station Oceana and Air Force Joint Base Langley-Eustis are located nearby.
The Chesapeake facility is the latest addition to LS Cable & System’s global expansion plans. The company has a facility in Tarboro, North Carolina, which is currently undergoing a $26.9 million expansion.
In an effort to address offshore wind demand, other manufacturing companies like JSW Steel are expanding to the U.S. The India-based company is investing over $200 million to upgrade its Texas and Ohio facilities to produce clean steel plates for the offshore wind industry.
