Chairman Cho Hyun-joon’s early US bet pays off with landmark deal
Hyosung Heavy Industries has secured a monumental power equipment contract in the United States, valued at approximately 787 billion won ($540.6 million). This landmark deal represents the largest single-project contract ever awarded to a Korean power equipment manufacturer in the US market.
The company announced Tuesday that it will supply 765-kilovolt ultra-high-voltage (UHV) transformers, reactors, and related equipment to a leading US transmission system operator.
Building upon last year’s significant “full package” agreement, which included 765-kilovolt UHV transformers and 800-kilovolt UHV circuit breakers, Hyosung Heavy Industries stated that this latest contract further solidifies its position as a dominant force in the US 765-kilovolt transmission sector.
Compared to existing 345-kilovolt and 500-kilovolt systems, 765-kilovolt transmission networks offer superior long-distance, high-capacity power delivery capabilities, while simultaneously minimizing energy losses. With the rapid expansion of AI data centers driving a surge in electricity demand, US power suppliers are increasingly adopting these high-performance 765-kilovolt grids.
Hyosung attributes its success to an early commitment to the US market, a strategic initiative spearheaded by Chairman Cho Hyun-joon. In 2020, well before concerns about US tariffs emerged, Cho made the decision to acquire a UHV transformer plant in Memphis, Tennessee. This forward-thinking investment has made Hyosung the only company with a US-based facility capable of manufacturing complete 765-kilovolt systems.
While the US government currently imposes tariffs of up to 50 percent on certain power equipment and related components, Hyosung is effectively shielded from these pressures due to its local manufacturing presence. This strategic advantage has enabled the company to supply nearly half of all 765-kilovolt UHV transformers currently operating within the US transmission grid.
Chairman Cho is further bolstering the company’s US presence with a $49 million investment to more than double UHV transformer production capacity at its Memphis plant. This expansion includes upgrades to testing and production facilities slated for completion this year. Furthermore, the company plans to invest an additional $157 million to increase capacity by more than 50 percent by 2028.
According to a Hyosung official, Chairman Cho’s decisive action benefited from insights gathered through extensive engagement with key US political and business leaders, allowing him to anticipate the need for increased production capacity.
Cho has held multiple meetings with prominent figures, including Senator Bill Hagerty of Tennessee, a close ally of former US President Donald Trump, as well as Oracle CEO Safra Catz, GE Vernova CEO Scott Strazik, and Tennessee Governor Bill Lee. He has also engaged in discussions with senior government officials, such as former US Secretary of Energy Chris Wright and former US Secretary of Housing and Urban Development Scott Turner.
Hyosung’s ability to provide comprehensive, full-package solutions to US utilities offers a key competitive advantage over Korean rivals like LS Electric and HD Hyundai Electric.
“The modernization of the outdated US transmission network necessitates more than just transformers for 765-kilovolt systems. High-specification equipment, including 800-kilovolt circuit breakers, is crucial throughout the entire system – a differentiator that sets us apart from suppliers offering only individual components,” stated the Hyosung official.
Even before Chairman Cho’s substantial US investment, Hyosung had established a strong foundation in the market, founding its US subsidiary in 2001 and becoming the first Korean company to export 765-kilovolt transformers to the United States in 2010. Since the early 2010s, Hyosung has consistently held the leading market share in the US.
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