LS Electric forms joint venture with Taiwan’s Formosa Plastics Group

LS Electric has signed an agreement to establish a joint venture (JV) in Taiwan to expand its presence in the local power infrastructure market. The new entity, named ‘Nanya Loxing’ (南亞樂星), will be formed through a partnership with Nanya Plastics and KHI, both affiliates of the Formosa Plastics Group.

The ownership structure of the joint venture consists of LS Electric holding a 50% stake, Nanya Plastics with 40%, and KHI with 10%. This partnership aims to transition LS Electric’s operations in Taiwan from a simple supplier of electrical equipment to a provider of comprehensive engineering and project procurement and construction (EPC) services.

The move is strategically timed to capitalize on Taiwan’s aggressive carbon neutrality policies, which aim to increase the share of renewable energy to 70% by 2050. This policy shift is expected to drive significant growth in markets for eco-friendly power facilities, energy storage systems (ESS), and digital smart grids. The joint venture intends to leverage LS Electric’s manufacturing and design capabilities alongside the local production and EPC networks of the Formosa Plastics Group to respond rapidly to local demand.