Hyosung to double transformer output for US market growth
Hyosung Heavy Industries’ US transformer unit aims for a 10 % market share within two years.
Image for illustration purposes
USA, Tennessee, Memphis: South Korea’s major power system and machinery conglomerate Hyosung Heavy Industries Corp. plans to nearly double its US transformer production to over 250 units annually by 2027.
The company’s US manufacturing arm, Hyosung HICO Ltd, will expand its Memphis plant’s capacity from 130 to over 250 units, investing hundreds of millions of US dollars (hundreds of billions of Korean won (₩)), gearing up for a surge in transformer demand during the artificial intelligence boom.
The first phase will increase output to 200 units by early 2026, then surpass 250 in 2027. This expansion is expected to raise Hyosung HICO’s US market share from 6 % to over 10 %.
Demand for transformers is soaring due to ageing US power grids and AI-driven data centre expansion. Over 70 % of US electricity grids are more than 25 years old, driving strong replacement demand. Additionally, new LNG, nuclear, and renewable energy plants require transformers.
Owning a Tennessee plant shields Hyosung from import tariffs. Acquiring the Memphis facility from Mitsubishi Electric for $45 M in 2020 has proven strategic.
With record profits of $250 M (₩362.5 B) in 2024 and forecasts exceeding $340 M (₩500 B) in 2025, Hyosung plans to expand its product range, adding industrial circuit breakers and power equipment to boost profitability.
Source: The Korea Economic Daily
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