LS Electric gets serious about renewable energy business, acquires FEMS company (Korea)

LS Electric, an electrical equipment manufacturer, acquired 80% of the shares of Elfems, which is primarily engaged in the leasing of energy-saving systems, in the April-June period, bringing its total holdings to 90%.
Elfems became a subsidiary of LS Electric. LS Electric expanded its Factory Energy Management System (FEMS) business to become the first service company in the heavy electrical industry.
In 2023, Volvo Korea, the Korean subsidiary of Swedish car giant Volvo, is expected to acquire FEMS's lease worth 182 billion won (approximately 19,338,780,000 yen).
Volvo Korea will gradually introduce FEMS to its Changwon plant and Volvo Trucks Korea's Gimhae and Incheon plants, and then install FEMS outside the plant.
The company plans to set up a separate power generation facility in the area and promote a power purchase plan (PPA). In the industry, LS Electric is expanding the scale of its renewable energy business and working to improve profitability.
The renewable energy market is growing rapidly worldwide, and there are many factors favorable for LS Electric, such as the enforcement of the Distributed Energy Revitalization Special Act in Korea.
Prior to this, the company had successfully won large-scale orders overseas, mainly for its energy storage system (ESS) business.