Hyosung Heavy Industries has broken ground on a new high-voltage direct current (HVDC) transformer manufacturing facility in Changwon, South Gyeongsang Province, signaling a major investment in next-generation energy transmission infrastructure.

The new facility, located within Hyosung's existing Changwon plant, will cover 29,600 square meters and is expected to be completed by July 2027. The project is part of a broader 330 billion won ($238.8 million) investment in HVDC technology over the next two years, including 254 billion won allocated to the construction of the plant itself.

According to Hyosung Group Vice Chairman Lee Sang-woon, the project aims to reduce Korea's reliance on foreign technology and establish domestic leadership in HVDC solutions, a market currently dominated by a few global players. "Developing HVDC systems domestically is crucial for Korea to remain competitive in future energy technologies," Lee said during the ceremony.

HVDC systems are critical for long-distance and renewable energy transmission, offering reduced energy loss compared to conventional HVAC systems. Hyosung began developing its own HVDC systems in 2017, investing over 100 billion won, and successfully localized key components by 2023.

The company plans to expand into 2GW-class HVDC solutions and increase transformer production capacity by 20% starting in 2028. This move aligns with national initiatives like the "West Coast Energy Highway," designed to connect renewable hubs in Korea's southwest with the Seoul metro area.

As demand for energy infrastructure grows globally, Hyosung's investment positions it as a potential leader in the evolving HVDC market, projected to more than double by 2034.