Powering Up: LS Electric to Increase Capacity by 50% at Bac Ninh Facility

HANOI, Vietnam ― LS Electric is set to boost production capacity by 50 percent to $60 million at its facility in Bac Ninh, just east of Hanoi, Vietnam. The expansion focuses on increasing output for battery control panels and electrical protection devices. This strategic move aligns with LS Electric CEO and Chair Koo Ja-kyun’s commitment to Southeast Asia, the world’s second-largest market for electric power systems after North America.

“Koo approved the construction project for a three-story building at the Bac Ninh plant on July 14,” Choi Jong-hoon, general director of LS Electric Vietnam, told reporters last Wednesday. “The site will prioritize efficient manufacturing of mass-produced items, including battery control panels for Samsung SDI and air circuit breakers.”

Battery control panels monitor and regulate battery voltage, safeguarding battery systems in energy storage products like Samsung SDI’s Battery Box. Air circuit breakers prevent abnormal electrical flow in power distribution systems used across industrial plants, commercial buildings, data centers, and other facilities.

Kim Sung-ho, technical director of LS Electric Vietnam, stated that the Bac Ninh site aims to increase its capacity from $40 million in 2022 to $60 million after the expansion. Notably, it will produce about 10,000 air circuit breakers annually, driven by recent investments from LS Electric’s global competitors in Vietnam’s electrical device market.

The expansion will create jobs for around 100 additional workers, bringing total employment to 500. As of May, the facility employed 372 people, with plans to reach 400 by 2026.

“Our Vietnam unit started with 20 billion KRW (14.4 million USD) in sales revenue in 2020 and is on track to hit roughly 200 billion KRW (150 million USD) this year,” Choi said. “Beyond expanding the existing Bac Ninh plant, we’re exploring additional facilities in Vietnam. Our target is $300 million in revenue by 2030.”
Choi emphasized that the Vietnamese base is leading the charge in addressing the global shift towards integrated energy solutions and high-value services beyond mere production and sales. The facility already exports 60 percent of its output to countries including Saudi Arabia, the United Arab Emirates, Kazakhstan, Brazil, and Kenya. As an ASEAN member, Vietnam benefits from intraregional export tariff exemptions.

Previously, the company focused on high-end power distribution panels and low-voltage power equipment. It provided electric power solutions for South Korean companies’ commercial buildings in Hanoi, including Lotte Mall, Lotte Center, and Landmark 72.

Besides Samsung SDI, the plant supplies LG Group factories in the Haiphong industrial park, utility company Electricity of Vietnam Ho Chi Minh City, and Vingroup, Vietnam’s largest conglomerate.

Kim highlighted the Bac Ninh plant’s use of flow production to maximize efficiency. Unlike LS Electric’s Cheongju facility in North Chungcheong Province, this site has limited partner companies for outsourcing manufacturing and support services.

On the battery control panel assembly line, the production team, identifiable by green hats, manages cabling for power connections in energy storage systems and places modular components on pallets. Inspectors in yellow hats then determine if the modules can move to the next stage for integration into ESS products. These modules are designed for seamless incorporation into the overall production process, enhancing time and cost efficiency while allowing easy customization.
Founded in 1997, LS Electric’s production facility in Dong Anh, Hanoi, relocated to Bac Ninh in 2022, expanding its capacity. Currently holding a 40 percent market share in Vietnam’s low-voltage power equipment sector, LS Electric Vietnam aims to capitalize on the government’s renewable energy initiatives under its eighth Power Development Plan, which seeks to modernize power distribution systems through smart grid development.