HD Hyundai Electric will spend 400 billion won ($307 million) to expand transformer production at its plants in Alabama and Ulsan, South Korea, responding to surging demand from artificial intelligence data centers.
The power equipment maker doubled its operating profit to 669 billion won last year as orders climbed to $3.82 billion, exceeding company targets. Order backlog swelled 29% to $5.54 billion, pushing the market into a seller’s favor with five years of production already secured.
The investment marks HD Hyundai Electric’s largest capital outlay since spinning off from HD Hyundai Heavy Industries. The expansion could boost annual sales by about 200 billion won, according to industry estimates.
The company completed a 12,690-square-meter transformer storage facility in Alabama last year, freeing up assembly space to increase output beyond current capacity of 400 units annually.
HD Hyundai Electric set its 2024 order target at $3.82 billion, focusing on North American data center power infrastructure. A company representative acknowledged plans to expand production but declined to provide specifics.
The announcement is expected as soon as January 20, reflecting growing pressure on power equipment makers to meet computing demands driven by AI development.
