SEOUL, November 18 (AJP) - Hyosung Chairman Cho Hyun-joon is moving to turn the company’s Memphis transformer plant into the largest facility of its kind in the United States, as demand for high-voltage equipment rises alongside the nation’s aging grid and a rapid build-out of AI-driven data centers.
Hyosung Heavy Industries said Tuesday it will invest $157 million to boost the plant’s production capacity by more than 50 percent by 2028. The expansion is part of Cho’s strategy to position the company for what he calls the era of “AI-powered power infrastructure.”
Including the latest investment, Hyosung has committed roughly $300 million to the Memphis site since acquiring it in 2020. The factory is the only U.S. facility capable of both designing and manufacturing 765kV transformers — equipment that reduces transmission losses more effectively than the more common 345kV or 500kV units. Hyosung has held a leading share of the U.S. 765kV transformer market since the early 2010s.
Demand for high-capacity transformers is projected to surge as utilities upgrade outdated systems and AI expansion drives heavy load growth. The U.S. transformer market is forecast to grow at an annual rate of 7.7 percent, doubling from $12.2 billion in 2024 to $25.7 billion by 2034, according to the company.
Hyosung said the expansion will strengthen its U.S. supply chain footprint, enabling quicker delivery of grid-critical equipment and cementing its position among the world’s top power-equipment suppliers. High-voltage transformers play a central role in stepping up and down voltage during transmission, directly affecting grid stability and efficiency.
Cho, who pushed ahead with the 2020 acquisition, said local production will be essential for long-term competitiveness.
“The future of the power industry lies in managing not just equipment but power flow, storage and system stability,” he said in a press release. “This expansion will solidify our position as the No. 1 global total-solution provider.”
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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