Hyosung Heavy Industries is strengthening its position in the US power equipment market, as early investments in local manufacturing begin to pay off amid surging electricity demand from artificial intelligence data centers and grid modernization.
The company has established US production capabilities for both 765-kilovolt transformers and circuit breakers rated at up to 800 kV, allowing it to supply core equipment for ultrahigh-voltage transmission networks.
Hyosung Heavy currently commands nearly half of the US market for 765-kV transformers, according to the company. It also offers circuit breakers spanning voltage classes from 72.5 kV to 800 kV.
The US is expanding its ultrahigh-voltage transmission network to accommodate rising electricity consumption from AI data centers and other large power users while replacing aging grid infrastructure. The 765-kV systems can transmit large volumes of electricity efficiently over long distances.
At the center of Hyosung’s US strategy is its ultrahigh-voltage transformer plant in Memphis, Tennessee.
Hyosung Group Chair Cho Hyun-joon led the acquisition of the facility in 2020, concluding that a local manufacturing base would be essential to compete in the growing US power infrastructure market.
The decision faced internal concerns at the time, but Cho saw long-term value in the site’s production capabilities and available land for future expansion, the company said.
Since the acquisition, Hyosung Heavy has invested a combined $300 million in the plant through three rounds of expansion. The company plans to increase its production capacity by more than 50 percent from current levels by 2028.
Once the expansion is completed, the Memphis facility will have the largest ultrahigh-voltage transformer production capacity in the US, according to Hyosung.
The plant is currently the only facility in the country capable of manufacturing 765-kV transformers, the company said. Such equipment requires sophisticated design and production technology because of the voltage and power capacity involved.
Hyosung said it has maintained the leading share of the US 765-kV transformer market since the early 2010s.
The company is now extending its localization strategy beyond transformers through a joint venture with Quanta Services, a major North American energy infrastructure company.
The venture is scheduled to begin producing ultrahigh-voltage circuit breakers in Pennsylvania in October. With the new operation, Hyosung says it will become the first Korean power equipment manufacturer with US production capabilities for both transformers and circuit breakers.
Cho played a central role in forming the partnership. He met the Quanta Services CEO and other senior executives in the US in March to finalize the joint venture agreement, according to Hyosung.
Quanta operates across US electricity and energy infrastructure markets, including utilities, power generation, energy storage and data centers, and has an extensive customer network.
Hyosung plans to combine its power equipment technology with Quanta’s infrastructure capabilities to expand beyond individual equipment sales into broader grid solutions.
The company aims to offer an integrated portfolio encompassing transformers, circuit breakers, energy storage systems and technologies for managing power flows and grid stability.
“The future of the power industry lies not only in equipment, but also in the ability to comprehensively manage power flow, storage and stability,” Cho said.
“Building on our position in the North American market, we will establish ourselves as a leading global provider of integrated power solutions.”
hyejin2@heraldcorp.com
