HD Hyundai Electric is intensifying its efforts to bolster its position in the ultra-high voltage transformer market by expanding its North American production capabilities.
On March 6, the company held a groundbreaking ceremony for its second factory at its North American production site in Montgomery, Alabama. The event was attended by HD Hyundai Electric President Kim Young-ki, Alabama Secretary of Commerce Ellen McNair, and key client representatives.
The new facility, covering 29,000 square meters (about 312,000 square feet), is slated for completion by April next year. HD Hyundai Electric plans to invest approximately 200 million USD to boost its ultra-high voltage transformer production capacity by 50%. Notably, the plant will feature testing and production equipment for 765kV ultra-high voltage transformers, addressing the growing demand for transmission network infrastructure in the U.S. Once operational, the company projects an additional annual revenue of around 200 billion KRW (approximately 135 million USD).
Established in 2011, the North American subsidiary stands as the first U.S.-based transformer manufacturing plant in the Korean power equipment industry and is the largest facility of its kind in the country. HD Hyundai Electric has consistently invested in local operations, expanding production space in 2018 and increasing transformer storage capacity in 2023. This local presence has enhanced the company’s competitiveness in the North American market by reducing lead times and improving customer responsiveness.
The local subsidiary has shown impressive growth. Revenue is projected to quadruple from 100 million USD in 2017 to about 400 million USD by 2025. The workforce has also expanded significantly, from around 100 employees in 2011 to approximately 460 in 2025. The completion of the second factory is expected to create about 200 additional jobs.
A spokesperson for HD Hyundai Electric stated that the North American production subsidiary has been instrumental in strengthening the foothold in the U.S. market. With the successful completion of the second factory and the synergies from the Ulsan plant expansion, set to finish this September, it aims to further cement our leadership in the North American ultra-high voltage transformer market.