Hyosung Heavy Industries is expanding its US manufacturing footprint as surging electricity demand from AI data centers and an aging power grid fuels orders for ultrahigh-voltage equipment.
The company has established local production capabilities for 765-kilovolt transformers and circuit breakers rated at up to 800 kV, strengthening its position in the US power equipment market.
At the center of the expansion is its transformer plant in Memphis, Tennessee — the only US facility capable of producing 765-kV transformers, according to Hyosung.
Hyosung Group Chair Cho Hyun-joon led the acquisition of the Memphis plant in 2020, viewing a local manufacturing base as essential to competing in the US power infrastructure market.
Since the acquisition, Hyosung Heavy has invested $300 million in the facility through three rounds of expansion. The company aims to increase production capacity by more than 50 percent by 2028.
Once the expansion is complete, the Memphis plant will have the largest ultrahigh-voltage transformer production capacity in the US, Hyosung said.
The company is also broadening its local manufacturing base through a joint venture with Quanta Services, a North American energy infrastructure company. The venture is scheduled to begin producing ultrahigh-voltage circuit breakers in October.
“The future of the power industry lies not only in equipment, but also in the ability to manage power flow, storage and grid stability comprehensively,” Cho said.
yejinlim@heraldcorp.com
