Hyosung Heavy Industries announced that it will invest $157 million in its power transformer plant located in Memphis, Tennessee, to expand power transformer production capacity by more than 50% by 2028.
Hyosung-Heavy-Industries--Power-Transformer-Plant-in-Memphis--Tennessee--USA
Hyosung Heavy Industries’ Power Transformer Plant in Memphis, Tennessee, USA
Hyosung Heavy Industries' additional expansion follows the directive of Chairman Cho Hyun-Joon, who emphasized the need to establish a forward-looking operating framework that positions the company ahead of the curve in the AI-era power infrastructure market.
Hyosung Heavy Industries has invested a total of $300 million, including the acquisition of the Memphis plant and this latest third-phase expansion. With this additional investment, the Memphis Power transformer plant will hold the largest production capacity in the United States.
The Memphis plant is the only facility in the U.S. capable of designing and manufacturing 765kV Power transformers. The 765kV Power transformer, known for its high design and manufacturing complexity, significantly reduces transmission losses compared to existing 345kV or 500kV transformers.
Through this investment, Hyosung Heavy Industries strengthens its position as the operator of the largest Power transformer production facility in the U.S., enhancing both technological competitiveness and local production and supply capabilities—solidifying its position as a leading company within the global power equipment industry's Big Four.
Chairman Cho has viewed establishing a U.S. production base as a key driver of competitiveness in the future power infrastructure market, leading to the acquisition of the Power transformer plant in Tennessee in 2020. The decision reflected his confidence in the long-term growth potential of the U.S. power market and the expansive site capabilities of the Memphis facility, despite internal concerns regarding various risks at the time of acquisition.
Chairman Cho stated, "The future of the power industry lies not only in equipment, but in the capability to holistically manage power flow, storage, and stability," adding, "Based on our strengthened position in the North American market through this expansion, we will firmly establish our standing as a global total solutions provider."
This year, Chairman Cho met with numerous Silicon Valley IT leaders and key figures in the global energy sector—including U.S. Secretary of Energy Chris Wright, Qatar Minister of State for Energy Affairs Saad Sherida Al-Kaabi, Oracle CEO Safra Catz, and International Energy Agency Executive Director Fatih Birol—to engage in in-depth discussions on industry transformation and potential collaborations.
In particular, he met with Senator Bill Hagerty three times this year, including during the "Korea-U.S.-Japan Economic Dialogue" last October, maintaining close communication. He also met with Tennessee Governor Bill Lee and agreed to collaborate in making the Memphis plant a core hub for the North American power industry.
