HD Hyundai Electric said Sunday that it held a groundbreaking ceremony on Friday for a second plant at its North American production base in Montgomery, Alabama, HD Hyundai Power Transformers USA.
Construction is scheduled for completion in April next year. The new facility will span about 29,000 square meters within the existing site and is expected to generate roughly 200 billion won ($134 million) in annual revenue.
The company plans to invest about $200 million to boost production of extra-high-voltage power transformers by 50 percent while adding manufacturing capacity for 765-kilovolt-class transformers. Demand for such equipment is rising in the US as utilities expand ultra-high-voltage transmission networks.
HD Hyundai Power Transformers USA was established in 2011 as the first and largest transformer manufacturing plant in the US built by a South Korean power equipment company.
HD Hyundai Electric initially invested 62 billion won to set up the subsidiary and added another 53 billion won in 2018 to expand production capacity. The localized manufacturing base has helped reduce supply lead times and improve customer responsiveness, strengthening the company’s competitiveness in securing orders in the North American market.
The plant’s performance has steadily improved. Annual revenue rose from about $100 million in 2017 to roughly $400 million in 2025. Its workforce has also grown from 100 employees in 2011 to 462 in 2025, with an additional 200 hires planned once the second plant is completed.
“The US production subsidiary has played a key role in strengthening our position in the American market through localized manufacturing,” an HD Hyundai Electric official said. “By leveraging local production and synergies with our domestic plants, we aim to further reinforce our leadership in the North American market.”
stlee0329@heraldcorp.com
