Struggles in American Transmission Technology Production Persist
TS Conductor's South Carolina Factory Faces Challenges Amid Tariffs and Trade Disputes
TS Conductor, a rapidly growing company founded in 2018, has announced plans to establish a factory in South Carolina, initially intended to serve as its 'export hub' for American-made transmission technology. However, the company is facing challenges due to retaliatory tariffs and trade disputes.
The factory, which will be located near Savannah, a growing manufacturing hub with a container port and several skilled training centers, was originally planned for Michigan. The move to South Carolina was prompted by the state's generous incentive package, including tailored curriculums at local technical colleges for recruiting and training new workers.
TS Conductor's innovative product features a carbon fiber composite core, wrapped in a layer of aluminum. This design solves many of the inherent limitations of traditional conductors, including thermal sag. The company's conductors are much cheaper than the industry-standard tech, due to the more widely used core materials.
The factory's operations are directly aligned with the priorities of the current administration, as it aims to address a critical national problem: the massive backlog of energy projects waiting to connect to the grid. The grant TS Conductor won from the Department of Energy's Office of Manufacturing and Energy Supply Chains to construct the factory in the United States further supports this goal.
However, the company is facing significant obstacles. The 25% tariff on Canadian aluminum is having a major impact on TS Conductor's operations, as around 90% of the aluminum used by the company is imported, largely from Canada. The retaliatory tariffs are likely to dampen demand for American-made transmission tech, potentially hindering the factory's success.
In addition, the grant for the manufacturing of conductors for high power transmission lines is currently on hold, which may lead to TS Conductor scaling back the first year of the factory's operations. The company's founder, Huang, is hoping to get more certainty about the final form of Trump's so-called Liberation Day tariffs.
Despite these challenges, TS Conductor is pushing forward with plans to bring the first phase of the factory online by the end of this year. However, most of the manufacturing equipment the company plans to use will have to be imported from China, which raises concerns about the factory's impact on American jobs.
Governor Henry McMaster of South Carolina has supported TS Conductor during his summer visit, expressing optimism about the potential benefits the factory could bring to the state. As the situation evolves, it remains to be seen how TS Conductor's South Carolina factory will fare amidst ongoing tariffs and trade disputes.
