Hyosung Heavy Industries has secured a significant contract to supply power equipment and expand substations in Mozambique, marking a major milestone in the company’s efforts to strengthen its presence in the African power market. The contract, valued at 42.8 billion KRW (approximately $32 million), was signed on May 4 at the Intercontinental Seoul COEX Hotel during the Korea-Africa Summit MOU signing ceremony.
The agreement with Mozambique’s state-owned electricity company, EDM, aims to modernize the country’s power infrastructure by replacing and expanding outdated transformers and substation equipment. Under the contract, Hyosung Heavy Industries will supply and replace 14 units of 220kV ultra-high voltage transformers by 2029, as well as improve and increase the capacity of existing substations.
Hyosung Heavy Industries has been recognized for its technical capabilities in the African market, having completed various projects over the past decade. The company first entered the African power market in 2013 with a turnkey project in Mozambique’s Gaza region, which included the construction of a Gas Insulated Switchgear (GIS) substation and the expansion of an Air Insulated Switchgear (AIS) substation.
Since then, Hyosung has established a subsidiary in South Africa and participated in power equipment supply and substation construction projects in Namibia, Ethiopia, South Africa, and Tanzania. Over the past three years, the company’s order amount in the African region has exceeded 500 billion KRW.
Woo Tae-hee, CEO of Hyosung Heavy Industries, emphasized the company’s commitment to technological development and new customer acquisition. “Hyosung Heavy Industries is expanding its global market dominance, focusing on the US and European markets, while also actively targeting new markets in the Middle East, Africa, and Oceania. With this Mozambique contract, we aim to become a top-class supplier in the African power market,” Woo stated.
This new contract underscores Hyosung Heavy Industries’ strategic focus on expanding its footprint in emerging markets. By modernizing Mozambique’s power infrastructure, Hyosung is not only enhancing its market presence but also contributing to the development of essential infrastructure in Africa.
