Executives from LS Cable & System, the South Korea-based manufacturer, had more to say when it came to their $689m manufacturing complex slated for the Greenbrier area of Chesapeake. This facility is key in building a China-free supply chain for materials of national security, remarked Patrick Shim, the Managing Director.
As per Shim, the project is going to be highly concentrated on the production of rare earth magnets, which are critical for modern military applications, and will be dubbed the largest private capital investment made in Hampton Roads history.
Shim added that “our magnets will be not only made in the U.S., but our underlying raw materials are coming from Australia. Those magnets are very vitally important for national security because they are used for advanced fighter jets, guided missiles, a lot of weapons systems.”
It is worth noting that the 86-acre site at 802 Yupo Court will contain three separate operations – copper rod production, magnet wire manufacturing when it comes to electric motors, and rare earth magnet production.
This kind of a diverse approach corresponds to the strategy of the company to build extensive domestic supply chains throughout several industries.
Shim claimed the site selection was the result of a competitive national process.
He added that, “As a company that looks at a lot of sites, we kind of know what the market rate is. We not only looked at Chesapeake but we looked at other parts of the country too.”
The Greenbrier project is expected to generate 430 jobs, thereby bringing the total regional workforce of LS Cable & System to almost 800 employees when paired with their separate LS GreenLink facility, which is under construction nearby the Jordan Bridge.
Says Steven Wright, Director of Chesapeake Economic Development, “Obviously we’re still a manufacturing business; a lot of jobs will be manufacturing related, but just like any other business, we’ll have everyone from accounting to IT to HR to marketing and all the way down to security. Anytime that you’re able to attract a company like LS Cable and System, it’s a real win for the city. Obviously that investment is going to equate to significant tax revenue for the city, but from a workforce standpoint, that workforce is regional.”
Company officials said environmental issues related to the former Mitsubishi Chemical site have been dealt with, and environmental evaluations are complete. Shim pledged to cut the environmental footprint of the facility while safeguarding the privacy of the community.
He said, “We’re gonna keep as much trees as we can, and we’ll have the buffer lines all around. So we’re gonna try to maintain what’s there as much as we can. It’s a big site. We’re going to try to touch as little as we can.”
As per Wright, the site has a history of manufacturing, having previously been designated for industrial expansion and once considered suitable for a Volvo manufacturing plant in the 1980s.
With an intent to build a China-free supply chain especially when it comes to, LS Cable & System anticipates closing on the site by the end of 2026 and starting construction soon after. The facilities are expected to be fully functional by 2029 or 2030.
The Greenbrier project is distinct from the GreenLink facility of the company, which is estimated to cost about $681 million and is still expected to be completed by 2027 end. The facility will make subsea power cables for high-voltage direct current and add another 330 jobs.
When combined, both projects are expected to make LS Cable & System one of the largest property taxpayers in the Hampton Roads region, accounting for almost $1.4 billion in overall private investment in Chesapeake.
The announcement underscores the growing importance of the region for national security manufacturing and supply chain diversity, as companies look to move production of critical defence materials away from overseas.