HD Hyundai Electric announced Sunday the groundbreaking ceremony held on Friday for its second plant at HD Hyundai Power Transformers USA, its North American production base located in Montgomery, Alabama.
The construction of the new facility is slated for completion in April of next year. This expansion will add approximately 29,000 square meters to the existing site and is projected to generate around 200 billion won ($134 million) in annual revenue.
The company is investing approximately $200 million to increase the production of extra-high-voltage power transformers by 50 percent and to establish manufacturing capabilities for 765-kilovolt-class transformers. This strategic move addresses the growing demand for such equipment in the US, driven by the expansion of ultra-high-voltage transmission networks by utility companies.
HD Hyundai Power Transformers USA was established in 2011 and holds the distinction of being the first and largest transformer manufacturing plant in the US established by a South Korean power equipment company.
HD Hyundai Electric initially invested 62 billion won to establish the subsidiary, followed by an additional 53 billion won in 2018 to further expand its production capacity. This localized manufacturing base has proven instrumental in reducing supply lead times, enhancing customer responsiveness, and bolstering the company’s competitive edge in securing orders within the North American market.
The plant has demonstrated consistent performance improvements, with annual revenue increasing from approximately $100 million in 2017 to around $400 million projected for 2025. The workforce has also expanded significantly, from 100 employees in 2011 to 462 in 2025. Following the completion of the second plant, an additional 200 hires are planned.
“The US production subsidiary has been pivotal in solidifying our position within the American market through localized manufacturing,” stated an HD Hyundai Electric official. “By leveraging local production capabilities and creating synergies with our domestic plants, we aim to further strengthen our leadership in the North American market for power transformers.”
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