LS Electric signs Taiwan JV with Formosa Plastics affiliates for power projects
In short
LS Electric signed an agreement on Oct. 6 in Seoul to set up a joint venture with Nanya Plastics and KHI, both affiliates of Taiwan’s Formosa Plastics Group, to pursue power infrastructure business in Taiwan. LS Electric will hold 50%, Nanya Plastics 40% and KHI 10% of the venture, named Nam A Nakseong (南亞樂星). The company said the JV will move its Taiwan business beyond equipment supply into engineering and order-taking.
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LS Electric signed an agreement on Oct. 6 to establish a joint venture with two affiliates of Taiwan’s Formosa Plastics Group to pursue power business in Taiwan, the company said on Oct. 7. The venture, named Nam A Nakseong (南亞樂星), will be owned 50% by LS Electric, 40% by Nanya Plastics and 10% by KHI. [ 1 , 2 , 4 ]
The signing took place at LS Yongsan Tower in Seoul. Attendees included LS Electric chairman Koo Ja-kyun, LS Electric chief executive Chae Dae-seok and East Asia division head Park Woo-beom, along with Formosa Plastics Group managing committee member (chairman) Wang Wen-yuan, Nanya Plastics senior vice president Chen Yo-sheng, Nanya Plastics power solutions vice president Chen Han-chin and KHI chief executive Park Dong-seop, according to the reports. [ 1 , 3 , 4 ]
According to the documents, the joint venture will first build capacity to respond locally to bidding, design and technical support for Taiwan power projects. The plan combines LS Electric’s power equipment manufacturing and design capability with Nanya Plastics’ local production base and engineering, procurement and construction network to raise competitiveness in winning orders. [ 1 , 2 , 4 ]
Nanya Plastics is described as a core affiliate of Formosa Plastics Group and Taiwan’s largest petrochemical and electronic materials and products company, which has recently been developing its power solutions business and expanding from distribution products into ultra-high-voltage transmission equipment and grid stabilization. KHI is a Formosa Plastics Group-invested subsidiary set up last year to invest in technologies researched at KAIST and commercialize them; the documents say it took a stake in the venture because of LS Electric’s competitiveness and growth prospects in the global power industry. [ 1 , 2 , 4 ]
The agreement follows a March last year memorandum of understanding between LS Electric and Nanya Plastics on cooperation in green power equipment and energy efficiency solutions. The companies had cooperated mainly on supplying power equipment, and the documents say the joint venture extends that to engineering and order-taking. [ 1 , 2 , 4 ]
The documents cite Taiwan’s government policy of raising the share of renewable energy to as much as 70% of total power sources by 2050 as the market backdrop, alongside investment in green power equipment, energy storage systems and digital smart grids. An LS Electric official said the Taiwan business, which has stayed at the level of supplying equipment, would be upgraded through the joint venture into an order-taking business combining engineering capability, and that the two sides expect early results in Taiwan power infrastructure orders. [ 1 , 2 , 4 ]
Why it matters
The deal gives a Korean power equipment maker a local partner with manufacturing and engineering, procurement and construction networks in Taiwan, a market the documents say is expanding investment in green power equipment, energy storage and smart grids. It builds on a 2025 cooperation memorandum between LS Electric and Nanya Plastics. The documents do not state the value of the investment or when the venture will begin operating.
Key facts
- LS Electric signed a joint venture agreement on Oct. 6 at LS Yongsan Tower in Seoul with Nanya Plastics and KHI. [ 1 , 2 , 3 , 4 ]
- The joint venture is named Nam A Nakseong (南亞樂星). [ 1 , 2 , 4 ]
- LS Electric will hold 50%, Nanya Plastics 40% and KHI 10%. [ 1 , 2 , 4 ]
- Nanya Plastics is a core affiliate of Formosa Plastics Group and is expanding from distribution products into ultra-high-voltage transmission equipment and grid stabilization. [ 1 , 2 , 4 ]
- KHI was set up last year by Formosa Plastics Group to invest in and commercialize technologies researched at KAIST. [ 1 , 2 , 4 ]
- The JV follows a March last year memorandum between LS Electric and Nanya Plastics on cooperation in green power equipment and energy efficiency solutions. [ 1 , 2 , 4 ]
- Taiwan’s government is pursuing a carbon neutrality policy that targets up to 70% of electricity from renewable sources by 2050, according to the documents. [ 1 , 2 , 4 ]
Confirmed by several sources
- LS Electric signed a joint venture agreement with Nanya Plastics and KHI for Taiwan power projects. [ 1 , 2 , 4 ]
- The equity split is LS Electric 50%, Nanya Plastics 40%, KHI 10%. [ 1 , 2 , 4 ]
- The venture is named Nam A Nakseong (南亞樂星). [ 1 , 2 , 4 ]
- The agreement follows a March last year MOU between LS Electric and Nanya Plastics. [ 1 , 2 , 4 ]
Still unclear
- The value of the investment in the joint venture and any target order volume. The documents describe the equity split and the business plan but give no figures for investment or expected orders.
- When the joint venture will be formally established or begin operations. The documents say the contract was signed but give no launch date.
- Which specific projects or tenders the joint venture will bid for. The documents describe capabilities and market conditions but name no contracts.
What local media are saying
Timeline, local time
- LS Electric, Nanya Plastics and KHI sign the joint venture agreement at LS Yongsan Tower in Seoul. [ 1 , 2 , 3 , 4 ]
- Asia Economy reports the signing, the venture’s name and the equity split. [ 1 ]
- Yonhap reports the joint venture and the plan to move into power infrastructure orders. [ 2 ]
- Newsis publishes a photo report of the signing ceremony. [ 3 ]
- Seoul Economic Daily reports the signing and the partners’ roles. [ 4 ]