Essex Solutions has seen substantial growth in demand for special winding wire that has propelled the U.S. subsidiary of LS Group to record impressive growth in its transformer wire sector, with an average annual growth rate of 11% in North America and 8% in Europe over the past four years, and much more than that by 2028.

Per multiple media reports, Essex Solutions sees continued strong demand for transformers driven by the rise of artificial intelligence (AI) data centers and the replacement cycle for approximately 70% of transformers in the United States. In response, Essex Solutions is operating its production lines at its Canadian and Italian plants at full capacity.

Essex Solutions also recently added two production lines to its North American manufacturing facilities, aiming to expand its production capacity from the current 3,500 tons to 8,500 tons by 2030, marking a 143% increase. Similarly, its European plant plans to boost production capacity from 11 thousand tons to a maximum of 15 thousand tons through improved operational efficiency and the replacement of outdated equipment.

The company’s expansion strategy is a response to continuous demand growth in North American and European markets. It expects to grow from the current 19% and 28% rates to 50% and 35%, respectively, by 2028. “We will solidify our position in the global market, including North America and Europe, by actively responding to diverse customer needs based on innovations in transformer winding wire manufacturing technology and efficient facility investments,” the release said.

The special winding wire industry for transformers typically operates by securing orders for production in three to six-month intervals. However, currently extending delivery times beyond two years due to a supply shortage—a situation expected to persist until 2030—this supply-demand imbalance is anticipated to drive rapid sales growth due to increased demand.