News Summary
Chesapeake, Virginia, is set to become the home of the nation’s largest subsea high-voltage direct-current cable manufacturing facility by LS GreenLink. The $700 million project will create over 330 jobs and aims to meet the growing demand for renewable energy solutions, particularly in offshore wind projects. With construction starting in April 2025 and mass production expected by early 2028, this facility will significantly boost the local economy and streamline logistics for shipping cable products globally.
Chesapeake, Virginia to Host Nation’s Largest Subsea Cable Manufacturing Facility by LS GreenLink
Chesapeake, Virginia, has officially begun construction on the nation’s largest subsea high-voltage direct-current cable manufacturing facility, spearheaded by LS GreenLink, a subsidiary of South Korea’s LS Cable & System. The ambitious project is set to be built on a nearly 100-acre riverfront site, encompassing approximately 754,000 square feet of manufacturing space. The total investment for the facility is nearing $700 million, signaling significant growth potential for the region’s renewable energy sector.
Construction of the facility commenced on April 28, 2025, with plans to complete it by the third quarter of 2027. Mass production of subsea cables is expected to begin in early 2028. Among the key features of the facility will be a 659-foot tall Vertical Continuous Vulcanization (VCV) tower, which is anticipated to be the tallest structure in Virginia.
The manufacturing plant will play an essential role in the offshore wind supply chain in Virginia, a sector recently shaped by regulatory changes from the Biden administration. The facility will include a dedicated pier on the Elizabeth River, allowing for direct loading of finished cables onto vessels for global shipment, thereby enhancing logistics and transportation efficiency.
Economic and Employment Impact
The establishment of this facility is projected to create over 330 full-time jobs for the local workforce. The decision to build the facility in Chesapeake followed thorough evaluations of over 30 site requirements across various locations in the United States, highlighting Chesapeake’s strategic advantages.
The site’s proximity to the Deep Water Terminal and the Ports of Virginia is expected to further streamline logistics for shipping manufactured cables. LS GreenLink has notably secured European grid operator Tennet as its first customer, indicating strong demand for its products, particularly in offshore wind projects.
Financial Support and Development Programs
The project has qualified for up to $147 million in support from both state and federal development programs. This includes a significant $99 million investment tax credit approved under the Inflation Reduction Act, which underscores the facility’s alignment with national energy priorities and economic recovery efforts.
LS GreenLink aims to meet growing demand for submarine power cables, especially as energy consumption from data centers continues its rapid increase. The investment reflects an ongoing trend among manufacturers to boost operations in renewable energy technologies, aligning with the increasing energy demands faced by regions across the country.
Background Context
Earlier attempts to establish similar manufacturing projects in the nearby city of Norfolk were unsuccessful, which ultimately led LS GreenLink to select Chesapeake for its significant investment. The construction of the tall VCV tower is integral to the cable manufacturing process, utilizing gravity to aid in the formation of cables to meet industry standards.
As the project progresses, LS GreenLink is closely monitoring potential tariff impacts, particularly concerning materials like copper. The company has expressed preparedness to adapt to changing market conditions, ensuring continued operational viability.
Virginia’s commitment to renewable energy innovation is emphasized by the construction of this facility, positioning the state as a leader in the offshore wind manufacturing sector. Through collaboration with local economic development officials, LS GreenLink’s investment highlights Chesapeake as a vital player in the transition to sustainable energy solutions.
Deeper Dive: News & Info About This Topic
- KED Global
- Pilot Online
- Chesapeake Bay Magazine
- Business Wire
- Manufacturing Dive
- Wikipedia: Offshore Wind Farm
- Google Search: Subsea Cable Manufacturing
- Google Scholar: Subsea Cables
- Encyclopedia Britannica: Subsea Cable
- Google News: Chesapeake Subsea Cable
