Hyosung Heavy Industries has struck gold with a massive contract valued at about $590.25 million to supply ultra-high-voltage transformers and reactors in the United States. This deal marks the largest order ever secured by a South Korean power equipment manufacturer in the U.S. market, underscoring Chairman Cho Hyun Joon’s steadfast commitment to American investments.
The company announced on Tuesday that it had inked an agreement valued at about $590.25 million with a major U.S. utility to provide 765-kilovolt (kV) ultra-high-voltage transformers and reactors. This landmark contract is not only the largest single deal in Hyosung’s history but also the biggest project ever awarded to a South Korean power equipment firm in the United States.
Building on its groundbreaking achievement last year as the first Korean company to secure a comprehensive contract for 765 kV ultra-high voltage transformers and 800 kV circuit breakers in the U.S., Hyosung continues to dominate the market. This latest win reinforces its unrivaled position as the leading supplier of 765 kV ultra-high voltage transformers in America.
Industry experts attribute this success to Chairman Cho’s strategic vision, widely recognized for his deep understanding of the U.S. market. Anticipating that a local production base would be crucial to future competitiveness in the power infrastructure sector, Cho made a bold move in 2020 by acquiring an ultra-high-voltage transformer plant in Tennessee.
Despite internal concerns about potential risks, Cho pushed forward with the acquisition, driven by his conviction in the transformative potential of artificial intelligence (AI) and the concept of technological singularity. Today, the Memphis facility has become a pivotal hub for local supply chain dominance. Once ongoing expansions are completed, it will boast the largest production capacity in the United States.
Cho has consistently emphasized that with the proliferation of AI and data centers, power infrastructure has become a critical industry intrinsically linked to national security. He stresses that Hyosung Heavy Industries must leverage its Memphis plant and cutting-edge high-voltage technology to establish itself as an irreplaceable partner in stabilizing the U.S. power grid.
Cho’s foresight has proven remarkably accurate. The United States, as the world’s largest energy market, is bracing for a 25% surge in power demand over the next decade, driven by the construction of AI data centers and the rapid adoption of electric vehicles. In response, major U.S. power companies are racing to develop 765 kV transmission networks. These advanced systems can transmit massive amounts of electricity over long distances while significantly reducing transmission losses compared to existing 345 kV or 500 kV infrastructure.
Hyosung Heavy Industries has supplied nearly half of the 765 kV ultra-high-voltage transformers currently installed in the U.S. grid. The company has maintained its market leadership in this sector since the early 2010s. Moreover, Hyosung boasts an unparalleled product lineup that includes 800 kV ultra-high voltage circuit breakers, further cementing its industry dominance.
Sources indicate that Cho personally spearheaded efforts to secure this latest contract. He has cultivated personal relationships with top executives at U.S. energy and power companies, including Energy Secretary Chris Wright, actively engaging in high-level negotiations for transformer sales.
Notably, Cho has built strong ties with Senator Bill Hagerty of Tennessee, a close ally of former President Donald Trump. He has also held strategic discussions with key figures such as Scott Turner, Secretary of Housing and Urban Development; Safra Catz, CEO of Oracle Corporation; Scott Strazik, CEO of GE Vernova; and Tennessee Governor Bill Lee. Through these high-profile engagements, Cho continues to expand his influence as a private diplomat in U.S. political and business circles.
Meanwhile, Hyosung Heavy Industries reported record-breaking financial results last year, with sales reaching about $4.48 billion and operating profits of about $560.25 million. The company’s global order book swelled to about $8.93 billion, marking a 34% increase from the previous year.
Looking ahead, Hyosung Heavy Industries is ramping up preparations for the high-voltage direct current (HVDC) transmission market, with major bidding opportunities expected to emerge in 2027. The company is currently constructing a state-of-the-art HVDC transformer factory at its Changwon plant, aiming to complete it by July 2027.