HD Hyundai Electric, an energy solutions provider and subsidiary of HD Hyundai, has announced a major investment plan of approximately $272.3 million (397 billion won) to expand its production capacity for 765-kilovolt ultra-high-capacity transformers. The investment will focus on the company's facilities in Ulsan, South Korea, and Montgomery, Alabama, as it aims to meet growing demand for power infrastructure in North America and other regions.

This strategic move, which is the largest investment since HD Hyundai Electric became independent from HD Hyundai Heavy Industries in 2017, will increase production at the Ulsan plant, which currently manufactures 300 transformers annually, and the Alabama plant, which produces 100 transformers a year. By 2028, the two plants are expected to generate an additional $151.3 million (200 billion won) in annual sales at the Ulsan plant and $75.3 million (100 billion won) at the Alabama facility.

The investment comes after HD Hyundai Electric reported robust sales growth, with total sales rising by 22.9% year-on-year to $2.49 billion (3.32 trillion won). The company also posted a record profit of $505.7 million (669 billion won), a 112.2% increase compared to the previous year. The company attributes this growth to strong performance in high-capacity transformer projects in the Middle East, as well as favorable exchange rates.

The expansion is also fueled by expectations of increased demand for power grids, especially in North America. HD Hyundai Electric is particularly optimistic about the potential for growth under a possible return of the Trump administration, which has pledged to revitalize traditional manufacturing in the US. The company is preparing for the rising demand for electric grid infrastructure, ensuring that its production capabilities are ready to support these new needs.

Once the expansion is complete, HD Hyundai Electric expects to be better positioned to serve the growing energy needs of both domestic and international markets, further solidifying its standing in the global transformer industry.

Source: koreaherald.com