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[Apha Biz=(Chicago) Reporter Paul Lee] LS Electric will invest $ 3.25 million (4.3 billion won) in an Indonesian corporation established last year to expand its business, including M&A.
It is seeking to expand its overseas businesses in Southeast Asia and the U.S. by investing an additional $20 million in U.S. corporations to build a tech center capable of research and partial production.
According to related industries on the 28th, LS Electric paid $ 3.25 million in July by participating exclusively in the paid-in capital increase of its subsidiary LS Electric Indonesia.
LS Electric established LS Electric Indonesia last year to provide power and automation solutions in Southeast Asia, mainly in Indonesia.
LS Electric has also established a production corporation in Vietnam to grow the Southeast Asian market, so it plans to enter the market in earnest through this paid-in capital increase. In this regard, LS Electric Indonesia is also considering mergers and acquisitions (M&A) based on the funds it has secured.
LS Electric Indonesia provides automation facilities for automobile production lines at Hyundai Motor's Indonesian plant, which was completed last year. Automation facilities for finished car production lines have been monopolized by global companies such as Mitsubishi, Siemens and Rockwell.
In addition, LS Electric invested an additional $ 20 million in LS Electric America Holdings, a subsidiary of LS Electric, in the same month to expand its US business.
LS Electric purchased 46,000㎡ of land and auxiliary facilities located south of Bastrup, Texas, USA in June. It is expected to be used as a fund to build a tech center capable of research and follow-up management (AS) and some production on the site.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
