LS Group’s American affiliate, Essex Solutions, is significantly expanding its production lines to meet the rapidly increasing demand for specialized transformer windings in North America and Europe.
Due to the surge in AI data centers and the rising demand for transformer replacements within the United States, orders for specialized windings have increased explosively. Over the past four years, Essex Solutions’ transformer winding business has grown annually by 11% in North America and 8% in Europe. Last year’s revenue was approximately $129 million (around 190 billion won).
Currently, Essex Solutions holds a market share of 19% in North America and 28% in Europe, with a target to expand these to 50% and 35%, respectively, by 2028. To achieve this, two additional production lines have been recently installed at the North American plant, with plans to increase the current production capacity of 3,500 tons to 8,500 tons by 2030, marking a 143% expansion. The European plant also aims to increase its current production capacity from 11,000 tons to a maximum of 15,000 tons by improving equipment efficiency and replacing outdated machinery.
The market for specialized transformer windings is experiencing a deepening supply shortage, causing a lead time of over two years for order fulfillment. The industry expects this supply-demand imbalance to continue until 2030, with further rapid market growth anticipated due to increasing demand.
Through the expansion of production capacity, Essex Solutions plans to strengthen the global supply chain and further solidify its position as a core supplier in the North American and European transformer industries.
