Chair Cho Hyun-joon strengthens partnership with Quanta as Hyosung expands its US power equipment business.
Hyosung Heavy Industries is expanding its manufacturing footprint in the US by producing high-voltage circuit breakers in Pennsylvania, as surging power demand from artificial intelligence and data centers drives investment in the US grid.
The South Korean power equipment maker’s US subsidiary, Hyosung HICO, signed an agreement with a subsidiary of Quanta Services, a Texas-based energy infrastructure company, in June to establish Hyosung HICO Breaker.
The new joint venture is expected to begin producing gas circuit breakers as early as October at Quanta’s existing facility in Canonsburg, Pennsylvania. The facility will manufacture high-voltage circuit breakers ranging from 72.5 kilovolts to 800 kilovolts.
The venture makes Hyosung Heavy the first South Korean power equipment manufacturer to operate US production bases for both transformers and high-voltage circuit breakers, according to the company.
The move comes as US utilities accelerate investment in transmission infrastructure to meet growing electricity demand from AI data centers and other power-intensive industries.
Quanta Services is a major US engineering, procurement and construction company specializing in power and energy infrastructure. Its customers include utilities, power generators, energy storage projects, data centers, and telecommunications companies across the US.
Hyosung said the partnership combines the company’s power equipment expertise with Quanta’s infrastructure capabilities, which will support the company’s broader expansion across the US power market.
The company has more than 50 years of experience in high-voltage circuit breakers and supplies the equipment to customers in more than 40 countries. Since entering the US market in 2011, the company has expanded its presence by developing products tailored to the requirements of US utilities.
Hyosung Chair Cho Hyun-joon has also sought to deepen the company’s relationship with Quanta as part of its broader push into the US power infrastructure market. The companies have discussed cooperation beyond circuit breakers, including direct-current power technologies.
"Our two companies have built a strong partnership through collaboration across a range of projects, from supplying circuit breakers and substation equipment to supporting power transmission and renewable energy integration projects," said Cho.
"As the rapid growth of AI increases the need for grid upgrades, we will draw on the experience gained from localizing our US operations. Together with this new joint venture, we aim to strengthen Hyosung's position as a total solutions provider in the US power market," he said.
Hyosung has been bolstering its US manufacturing capacity as demand for power equipment rises.
Its ultra-high-voltage transformer plant in Memphis, Tennessee, has become a key manufacturing base in the US. Hyosung has invested about $300 million in the facility, including its acquisition and subsequent expansion project.
Once the latest expansion is completed, the Memphis plant is expected to have one of the largest transformer production capacities in the US.
Earlier this year, Hyosung Heavy Industries secured a power equipment supply contract of about $540 million from a major US transmission grid operator, the largest such contract awarded to a South Korean power equipment manufacturer.
The expansion comes amid expectations of continued growth in the North American circuit breaker market. Global Market Insights estimates the market will expand at a compound annual growth rate of 6.7 percent, from $4.8 billion in 2024 to $9.6 billion by 2034.
sahn@heraldcorp.com
