South Korean manufacturer Hyosung Heavy Industries has secured a contract worth more than 200 billion won ($145 million) to supply ultra-high voltage equipment for transmission projects across the southern and eastern United States, according to the company’s announcement Thursday.
The deal with an unidentified major US transmission operator includes 29 units of 765-kilovolt transformers and reactors plus 24 circuit breakers. The equipment will support new 765kV transmission infrastructure designed to handle surging electricity demand from artificial intelligence data centers and aging grid replacement needs.
Hyosung’s Memphis facility represents the sole US production site capable of manufacturing 765kV transformers, positioning the company advantageously as American utilities embrace higher-voltage transmission technology. The Korean firm acquired the Tennessee plant from Mitsubishi Electric for $45 million in 2020, strategically avoiding potential import tariffs.
The contract underscores accelerating demand for ultra-high voltage equipment as US power consumption is projected to rise 25% over the next decade. Grid operators are increasingly turning to 765kV systems that can transmit larger amounts of electricity over longer distances with reduced losses compared to conventional 345kV or 500kV networks.
Industry analysts note that only approximately 10 companies worldwide possess the technical capabilities to produce 765kV transformers, which require specialized high-voltage insulation technology and extensive testing protocols. Each transformer unit costs between 6 billion and 20 billion won ($4.3 million to $14.4 million) to manufacture.
Hyosung Heavy Industries has benefited substantially from the US power infrastructure upgrade cycle, with operating profits reaching a record 362.5 billion won in 2024. The company projects profits will exceed 500 billion won this year as transmission modernization projects accelerate nationwide.
