Construction Begins on $681 Million Cable Manufacturing Facility in Chesapeake

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Construction site of a cable manufacturing facility in Virginia

News Summary

LS GreenLink USA, Inc. has commenced the construction of a $681 million cable manufacturing facility in Chesapeake, Virginia. The facility, featuring a 660-foot VCV tower, aims to enhance the production of high-voltage direct current submarine cables necessary for modern energy infrastructures, including offshore wind projects. Supported by substantial tax incentives and job creation, this project is expected to create over 330 jobs and solidify Virginia’s role in the energy manufacturing sector. The facility is projected to be operational by early 2028.

Virginia

LS GreenLink USA, Inc. has officially initiated construction on a remarkable $681 million cable manufacturing facility in Chesapeake, Virginia, which is anticipated to become the tallest building in the state. The new facility will feature a 660-foot Vertical Continuous Vulcanization (VCV) tower, designed to enhance the production of high-voltage direct current (HVDC) submarine cables crucial for modern energy infrastructures, including offshore wind projects.

The project has received substantial support from local and federal sources, including $99 million in investment tax credits provided under Section 48C of the Inflation Reduction Act of 2022. Additional financial incentives from the Commonwealth of Virginia and Chesapeake are facilitated through the efforts of the Virginia Economic Development Partnership and Chesapeake Economic Development Authority, further solidifying the project’s foundation.

The manufacturing plant will cover an impressive 750,000 square feet and will not only focus on domestic cable production but also aims for the international market, particularly in Europe. It is projected that the facility will generate over 330 new jobs in the region, fostering local economic growth.

The facility will also include a dedicated pier, which will streamline the production and global delivery process of high-voltage subsea cables, making it a pivotal component in advancing the energy sector. The initial phase of the development is expected to be completed by the third quarter of 2027, with full operational capabilities projected for the first quarter of 2028.

Project Benefits and Community Impact

The groundbreaking ceremony was attended by several key leaders and stakeholders who articulated their support for the project. Notably, Virginia Governor Glenn Youngkin underscored the project’s significance in bolstering the state’s commitment to innovation and energy manufacturing. U.S. Senators Mark Warner and Tim Kaine also expressed optimism about the economic benefits and job creation anticipated from the initiative.

This multi-phase project offers LS GreenLink the flexibility to increase production capacity to meet the growing global demands for energy infrastructure. The overall aim is not just to satisfy domestic needs but also to position the United States as a competitive player in the international energy supply chain.

Facility Specifications and Future Prospects

The chosen site for the new facility spans 96.6 acres, signifying a substantial investment and commitment by LS GreenLink to enhance domestic manufacturing capabilities focusing on energy infrastructures. As the facility progresses, it will serve as a critical manufacturing hub for the production of HVDC cables, which are vital for renewable energy projects.

As construction moves forward, the project stands as a beacon of advancement within the state and a pivotal element of Virginia’s strategy to lead in energy manufacturing and sustainability. The establishment of this manufacturing facility not only promises to boost local employment but also aims to reinforce the state’s position as a key player in the emerging green energy sector.

In conclusion, the commencement of the LS GreenLink facility marks a significant milestone for Chesapeake, Virginia, with far-reaching implications for the energy industry and local economy. As the company prepares to break ground, all eyes will be on the transformative potential this project holds for the region and beyond.

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