HD Hyundai Electric to invest $272.3 M in transformer production

HD Hyundai Electric plans to invest 397 billion won ($272.3 million) to boost production capacities for 765 kV ultra-high-capacity transformers at its plants in Ulsan and Alabama.

 


HD Hyundai Electric to invest $272.3 M in transformer production

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South Korea, Seoul: HD Hyundai Electric has announced investment plans of 397 billion won ($272.3 million), which are driven by strong sales growth. The company plans to invest the funds to expand production capacities for 765 kV ultra-high-capacity transformers at its plants in Ulsan and Alabama. This is the largest investment by the company since it became independent from HD Hyundai Heavy Industries in 2017.

Once the plan is completed in 2028, the Ulsan and Alabama plants will be projected to generate an additional 200 billion won and 100 billion won in annual sales. At the moment, the Ulsan plant produces 300 transformers a year, while the figure is 100 a year for the Alabama facility.

The investment is driven by the company’s sales performance last year. The company reported sales of 3.32 trillion won, a 22.9% increase year-on-year. This was driven by strong performance in high-capacity transformer projects in the Middle East. Favourable exchange rates also contributed to a record annual profit of 669 billion won, a 112.2% increase compared to the previous year.

With the investment, the company is preparing for an anticipated surge in demand for power facilities in North America, as it is expected that the demand for electric grids will increase under a return of the Trump administration, which has pledged to revitalize traditional manufacturing in the US.

Source: The Korea Herald