Hyosung Heavy Industries plans to expand its Memphis transformer plant for the second time, capitalizing on surging North American demand for power grid equipment.
The move follows the Korean manufacturer’s 100 billion won ($75 million) investment announced last June to boost production at both its US and Changwon facilities. The Memphis site, Hyosung’s only North American production base, focuses on ultra-high voltage transformers critical for modernizing power infrastructure.
Industry analysts point to a “super cycle” in the transformer market driven by aging grid replacement needs and increasing adoption of AI-enabled equipment. Current lead times stretch to 4-5 years, creating favorable conditions for suppliers to secure high-margin orders.
The expansion comes as Hyosung reported strong 2023 results, with consolidated sales of 4.9 trillion won ($3.7 billion) and operating profit jumping 40% to 362.5 billion won ($272 million). The company faces growing competition from HD Hyundai Electric, which recently committed 400 billion won to expand its transformer facilities in Alabama and South Korea.
The new Memphis capacity is expected to come online in 2025. Both Korean manufacturers have secured orders through 2028, indicating sustained demand as US utilities upgrade their transmission networks to accommodate renewable energy integration.
