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Hyosung Heavy Industries's ultra-high voltage transformer plant in Memphis, Tennessee (Hyosung Heavy Industries) |
Hyosung Heavy Industries announced Wednesday its plans to expand its ultra-high voltage transformer factories in the US and Korea to meet increasing global demand for electricity infrastructure.
The company will add a test line and expand the existing testing and production facilities at its ultra-high voltage transformer plant in Memphis, Tennessee. This expansion is expected to double the production capacity of the plant.
Simultaneously, the Changwon plant in South Gyeongsang Province, which is the mother plant for ultra-high voltage transformers, will also undergo expansion. This includes constructing a new testing room and expanding production facilities to increase capacity.
With an investment of approximately 100 billion won ($72.6 million), expansion of the Memphis and Changwon plants is expected to be completed by 2025 and 2026, respectively, resulting in over a 40 percent increase in the company’s combined ultra-high voltage transformer production capacity.
Hyosung Heavy Industries said it decided to implement the expansion project to meet the growing demand for power grid infrastructure worldwide, driven by the increase in renewable energy generation to combat climate change, as well as the rising popularity of high electricity-consuming sectors such as artificial intelligence, electric vehicles and semiconductors.
"We aim to establish ourselves as a top-class supplier in the global market by capitalizing on the super cycle in the power equipment industry,” said Woo Tae-hee, CEO of Hyosung Heavy Industries. “We will continue to provide high-quality, sustainable products to more customers."
Currently, Hyosung Heavy Industries is experiencing increased profits in the US from power grid reinforcement projects while expanding its presence in the European market by investing in the eco-friendly power sector, including the establishment of a research and development center.
