Nan Ya Plastics forms power equipment joint venture with LS ELECTRIC

Nan Ya Plastics (Formosa Plastics Group) set up a joint venture, Nan Ya LS, with South Korea's LS ELECTRIC, announced October 6, 2026, to build heavy electrical equipment and power engineering services in Taiwan. The company created an electrical power engineering department in April to expand into engineering design and project contracting. Planned offerings include eco-friendly gas-insulated switchgear, H-class high-temperature transformers, microgrid development, and after-sales maintenance and testing. Nan Ya also previously partnered with Taiwan peers for entry into the US power infrastructure market.

Key facts

Market context

Nan Ya Plastics is best known as a petrochemical producer, so this move into heavy electrical equipment is a notable diversification. Gas-insulated switchgear, high-temperature transformers and microgrid systems are core products for utilities, industrial plants and data centers, where demand is driven by grid reinforcement, renewable integration and the rising power loads of AI computing facilities. Electrical equipment supply chains have been tight in recent years, with long lead times for transformers and switchgear, so new domestic capacity and engineering services can affect bid competition and project timing. For chemical buyers, the story illustrates how large petrochemical groups are moving into downstream infrastructure, which can shift capital allocation within the group and increase competition for contracts in Taiwan. Market effects on commodity chemical prices or supply are not implied by this type of move, since the venture concerns equipment and engineering rather than production of materials.

Source: official release on fpg.com.tw. Summary and context written by Market Krystal.