South Koreans' $700m factory bet that US offshore wind can outlast Trump
South Korean firm set to receive millions in IRA tax credits for nascent factory with backlog of orders for European market
South Korea's LS GreenLink has bucked the trend of firms cancelling investments in the flailing US offshore wind market by breaking ground on a $700m subsea cable making plant in Chesapeake, Virginia,
The 750,000-square-foot (69,677 sq. metres) facility will manufacture subsea export and interarray cables and is slated begin operations in 2028, when it will employ some 330 workers.
LS GreenLink is a subsidiary of South Korean manufacturer LS Cable & System.
The move comes only months after Italian cable maker Prysmian pulled the plug on its planned factory for Somerset, Massachusetts, due to local opposition and market uncertainty linked to President Donald Trump’s sector hostility.
Trump’s memorandum on 20 January not only banned new leasing and permitting but also put existing projects under scrutiny with a goal of “terminating or amending” them.
The fallout has resulted in cancellation of multiple supply chain investments and put others at risk.
LS GreenLink president Koo Bon-kyu said the company remains bullish on the US sector despite the recent turmoil.
“If you look at this as a timeline of only 1,2,3,4,5 years, it's difficult to make a decision,” he told attendees to industry advocacy group Oceantic Network’s 2025 International Partnering Forum.
Still, “We're looking at this as an industry that will last over 20 to 30 to 40 years,” Koo said.
“We're going to have our ups and downs, but if you look at the long period curve, this will be a curve that will now be going up,” he added.
While LS GreenLink is bullish on the US sector’s long-term prospects, BNEF noted in its recent 1H 2025 industry report that the facility will rely on “growing demand for offshore export cables in Europe.”
This view was confirmed by company employees who were not permitted to speak on the record to press.
The new cable maker will also rely on tax credits in the Inflation Reduction Act (IRA) that may also be at risk.
Last March, the project qualified for $99m worth of investment tax credits under IRA.
The so-called Qualifying Advanced Energy Project Credits are available for three categories of investments. In this case, Chesapeake qualified as a new clean energy manufacturing facility.
Governor Glenn Youngkin also approved a $13.2m grant for the project. Additionally, LS GreenLink is eligible for state benefits from The Port of Virginia Economic and Infrastructure Development Zone Grant Programme, which is designed to provide companies with incentives to locate new maritime-related “employment centres” that promote port growth.
Virginia is home to the nation's largest offshore wind project under construction, Dominion Energy's 2.6GW Coastal Virginia Offshore Wind array.
The project has already installed over 70 monopiles as well as transition pieces and cables, and is expected to continue to completion in late 2026 despite legal challenges.
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