Hyosung Heavy Industries, a key subsidiary of Hyosung Group, is accelerating its expansion of ultra-high voltage transformer production in Memphis, Tennessee, to meet soaring U.S. power infrastructure demand.

The Memphis plant--acquired in 2020--is currently the only facility in the United States capable of producing 765kV ultra-high voltage transformers, critical for modernizing aging grid systems and powering large-scale AI data centers, semiconductor factories, and EV battery plants. Responding to capacity constraints, Hyosung is now planning a significant expansion that could increase annual output to 200 units.

In Q1 2025, Hyosung Heavy Industries posted record operating profits of 102.4 billion won (up 82.3% YoY), supported by a 9.3% increase in sales to 1.0761 trillion won. Around 70% of its U.S. sales come from locally manufactured products. The company's Memphis-based subsidiary, Hyosung HICO, has also qualified for federal tax credits under the Inflation Reduction Act, covering up to 30% of eligible investments.

The expansion positions Hyosung as a crucial domestic supplier amid a nationwide grid overhaul and aligns with U.S. efforts to reduce reliance on imported electrical components.

A company representative stated, "We are considering additional expansion of our U.S. plant to meet demand that exceeds current capacity."

The move reflects Hyosung Group Chairman Cho Hyun-joon's active engagement in the board to strengthen the power equipment business amid favorable market conditions.