SEOUL, May 24 (AJU PRESS) - LS Cable & Systems, a Korean power cable maker, plans to construct a factory in Mexico to produce bus ducts, a new type of electricity distribution system typically installed in high-rise buildings due to their efficiency and convenience compared to conventional cables.
A bus duct, containing either aluminum or copper busbars, is mostly used for large-scale electrical transmission. The system offers convenience in installation and maintenance and can reduce power usage by more than 30 percent.
LS Cable said Thursday it will build a bus duct factory on a 126,000-square-meter site in Mexico's central state of Querétaro. Construction is set to start in the latter half of 2024, with completion scheduled for 2025.
The factory will be LS Cable's fourth bus duct production base, following those in Korea, China and Viet Nam, and will be used as an export base targeting North American markets.
"Mexico presents advantages such as low labor costs and the opportunity to benefit from incentives under the U.S.-Mexico-Canada Agreement (USMCA) and the U.S. Inflation Reduction Act (IRA)," the Korean firm said in a press release.
LS Cable expects its bus duct sales in North America to reach $100 million by 2030. According to the company, the North American bus duct market is experiencing rapid growth due to the construction of large-scale data centers, semiconductor facilities, electric vehicle factories and battery plants.
reporter
Kim Joo-heon
jhkim123@ajunews.com
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