LS Cable & System, the South Korean power cable manufacturer, has begun constructing what it says will be the world’s tallest vertical continuous vulcanization tower at its subsea cable plant in Chesapeake, Virginia, marking a significant step in its North American expansion.

The company said Thursday that its U.S. manufacturing subsidiary, LS GreenLink, had started work on the VCV tower at the facility, which is expected to become the largest subsea cable factory in the United States. A VCV tower is a core production facility used to form the insulation layer of high-voltage subsea cables. Producing cables vertically minimizes the effects of gravity, improving product quality and manufacturing efficiency.

The tower will stand 660 feet, or 201 meters, when completed. LS Cable said it will be the world’s tallest such tower and the tallest structure in Virginia.

The plant is scheduled for completion in the second half of 2027, with commercial production expected to begin in the first quarter of 2028.

LS Cable & System CEO Koo Bon-kyu attended a groundbreaking ceremony Wednesday with Virginia Gov. Abigail Spanberger, U.S. Sen. Tim Kaine, D-Va., U.S. Rep. Bobby Scott, D-Va., and state and local officials.

The company’s investment comes as the United States expands spending on transmission infrastructure to replace aging power grids and to meet rising electricity demand from artificial intelligence data centers. LS Cable said the country currently has only one large-scale subsea cable production facility.

Under its North American strategy, LS GreenLink and LS Marine Solution will focus on the high-voltage transmission market while Gaon Cable, a related South Korean cable maker, will target power infrastructure for AI data centers. The companies are seeking to establish an integrated North American power infrastructure supply chain covering cable manufacturing, installation and data-center electricity systems.

LS Cable also said it plans to respond to U.S. policies encouraging domestic manufacturing and stronger energy supply chains. MSI previously reported that Gaon Cable had supplied transmission cables worth tens of millions of dollars to a U.S. solar power complex and that its U.S. exports were expected to more than double this year. South Korea’s Gaon Cable supplies cables to US solar project

“LS GreenLink is a strategic base capable of supplying not only North America but also the European market,” Koo said in a statement.

“We will continue expanding our market presence based on our local production capabilities and technological competitiveness,” he said.