SEOUL, South Korea — LS Electric is making a major push deeper into Taiwan’s growing power infrastructure market, teaming up with two Formosa Plastics Group affiliates to expand beyond electrical-equipment sales and pursue larger infrastructure projects.
The South Korean power-equipment and automation company signed an agreement Tuesday with Nan Ya Plastics and KHI to establish a joint venture focused on Taiwan’s power business, according to LS Electric.
Under the agreement, LS Electric will hold 50 percent of the joint venture, while Nan Ya Plastics will own 40 percent and KHI 10 percent. The venture will operate under the name Nan Ya L&S, according to the reports.
From Equipment Sales to Infrastructure Projects
The partnership marks a significant expansion of LS Electric’s Taiwan strategy.
Until now, the company’s Taiwan business has primarily focused on supplying power equipment. The new joint venture is designed to give LS Electric a local platform for winning projects, engineering, design and technical support, allowing it to participate more directly in major power-infrastructure contracts.
The venture will combine LS Electric’s power-equipment manufacturing and design capabilities with Nan Ya Plastics’ local production base and its engineering, procurement and construction, or EPC, network.
That combination is intended to help the partners respond more quickly to Taiwanese projects and compete for infrastructure orders.
Why Formosa Plastics Matters
Nan Ya Plastics is a core affiliate of Formosa Plastics Group and has been expanding its own power-solutions business.
The company has moved beyond traditional power-distribution products into extra-high-voltage transmission equipment and power-grid stabilization, creating potential overlap with LS Electric’s expertise.
KHI, the third partner, was established last year with investment from Formosa Plastics Group to commercialize promising technologies developed through the Korea Advanced Institute of Science and Technology, or KAIST.
The new venture therefore brings together Korean power-equipment technology, Taiwanese manufacturing and EPC capabilities, and technology-commercialization expertise.
Taiwan’s Energy Transition Creates New Demand
The partnership comes as Taiwan continues investing in its electricity infrastructure while pursuing its carbon-neutrality goals.
Taiwan aims to increase renewable energy to as much as 70 percent of its power mix by 2050 and is investing in areas including renewable-energy infrastructure, energy-storage systems and digital smart grids.
Those investments could create opportunities for companies involved in transmission equipment, grid stabilization, energy storage and smart-grid technologies.
For LS Electric, the new joint venture provides a way to target that demand through local project capabilities rather than relying mainly on equipment exports.
Partnership Builds on Earlier Agreement
The deal also expands cooperation that began with a March 2025 memorandum of understanding between LS Electric and Nan Ya Plastics covering environmentally friendly power equipment and energy-efficiency solutions in Taiwan.
Their cooperation had initially centered on equipment supply. The new joint venture broadens the relationship into engineering and project contracting.
An LS Electric official said the company expects the partnership to upgrade its Taiwan business by combining engineering capabilities with its existing power-equipment operations and to create opportunities for power-infrastructure contracts.
The move gives LS Electric a stronger local presence as Taiwan modernizes its electricity network.
What began as a power-equipment supply business is now expanding into a broader infrastructure play — and LS Electric’s new partnership with Formosa affiliates could put the Korean company much deeper into Taiwan’s next generation of power projects.
WWC ONE MEDIA G,A
