HD Hyundai Electric Breaks Ground on Second U.S. Transformer Factory in Alabama
HD Hyundai Electric has broken ground on a second power transformer manufacturing facility in Montgomery, Alabama, as the company moves to expand its U.S. production capacity amid rising electricity demand.
The project represents a $200 million investment and will be built on the company’s existing Alabama campus, which HD Hyundai Electric describes as the largest power transformer production site in the United States. The new facility will cover about 48,215 square meters (approximately 519,000 square feet), with construction scheduled for completion in April 2027.
The expansion comes as the United States faces rapidly increasing power demand, driven in part by the growth of artificial intelligence infrastructure and large-scale data centers. Utilities are also investing heavily in replacing aging transmission systems, contributing to a broader shortage of grid equipment such as high-capacity transformers.
Once operational, the new plant is expected to increase HD Hyundai Electric’s production capacity for ultra-high-voltage transformers in the U.S. market by roughly 50 percent.
According to company data, HD Hyundai Electric’s U.S. sales have grown significantly in recent years, rising from around $100 million in 2017 to approximately $400 million in 2025. The company’s workforce in the United States has also expanded, increasing from about 100 employees in 2011 to roughly 460 in 2025.
The second Montgomery facility is expected to create approximately 140 additional jobs once completed.
Industry analysts note that transformer manufacturing capacity has become a strategic issue for utilities and governments as electricity consumption rises and power grids undergo modernization.
Source: koreajoongangdaily.joins.com
