LS ELECTRIC forms joint venture with Taiwan’s Nanya Plastics, targets local power market

[Financial News] LS ELECTRIC is expanding its business in Taiwan into engineering and power infrastructure project contracting. The company plans to establish a joint venture with Formosa Plastics Group, Taiwan’s largest petrochemical company, to secure local manufacturing capabilities and business networks.
LS ELECTRIC announced on the 7th that it signed an agreement on the 6th at LS Yongsan Tower in Seoul with Nanya Plastics, an affiliate of Formosa Plastics Group, and KHI to establish a joint venture (JV) for power projects in Taiwan.
The signing ceremony was attended by LS ELECTRIC Chairman Koo Ja-kyun and CEO Chae Dae-seok; Wang Rui-yu, an executive committee member (chairman) of Formosa Plastics Group; Chen You-sheng, senior vice president of Nanya Plastics; and KHI CEO Park Dong-seop, among others.
The joint venture will be named “Nam-a Nak-seong.” LS ELECTRIC will hold a 50% stake, Nanya Plastics 40%, and KHI 10%.
The joint venture plans to build the capabilities needed to locally bid for power projects in Taiwan and handle design and technical support. It will combine LS ELECTRIC’s power equipment manufacturing and design expertise with Nanya Plastics’ local manufacturing and production base and its engineering, procurement and construction (EPC) network to improve its competitiveness in winning contracts. Linking power equipment supply with local design and technical support is central to this business expansion.
Nanya Plastics is a key affiliate of Formosa Plastics Group, with businesses in petrochemicals, electronic materials and electronic products. In recent years, it has been developing its power solutions business and expanding beyond its existing power distribution products into ultra-high-voltage transmission equipment and power grid stabilization.
KHI is a subsidiary established last year by Formosa Plastics Group to invest in promising research and development technologies from KAIST and commercialize them. It invested in the joint venture after recognizing LS ELECTRIC’s business competitiveness and the growth potential of the global power industry.
The agreement follows a memorandum of understanding (MOU) signed by LS ELECTRIC and Nanya Plastics in March last year on “Cooperation on Taiwan’s Eco-Friendly Power Equipment and Energy Efficiency Solutions Business.” The two companies are expanding their collaboration, previously centered on supplying power equipment, into engineering and project contracting.
The Taiwanese government is pursuing a carbon neutrality policy that aims to raise the share of renewable energy in the country’s total power supply to as much as 70% by 2050. The company expects investment in power infrastructure—including eco-friendly power facilities, energy storage systems (ESS) and digitally enabled smart grids—to increase as a result.
An LS ELECTRIC representative said, “Through the joint venture, our business in Taiwan, which has so far been limited to supplying power equipment, will be upgraded to project contracting that combines engineering capabilities. We expect synergies between the two companies’ capabilities to help us achieve results early in power infrastructure contracting in Taiwan as well.”


[email protected] Park Ji-yeon Reporter