Hyosung HICO is continuing to expand its U.S. manufacturing footprint with plans to construct a new $32.5 million transformer manufacturing building at its headquarters in Memphis, Tennessee. 

According to construction permits filed with the Memphis and Shelby County Division of Planning and Development, the project will add an 81,170-square-foot single-story facility as part of the company’s Project Innovation West initiative. 

The new building will include approximately 74,068 square feet of factory space, along with 2,065 square feet of office space and 5,035 square feet of storage space, supporting expanded large power transformer manufacturing capacity. 

Hyosung HICO, a U.S. subsidiary of Hyosung Heavy Industries, manufactures large power transformers for high-voltage transmission networks. The expansion will enable the Memphis facility to produce 765-kV transformers, further strengthening domestic manufacturing capacity for ultra-high-voltage grid infrastructure. 

The construction follows a series of major investments in the Memphis campus. In November 2025, the company announced plans to invest $157 million and create 240 new jobs, while an earlier announcement in May 2025 included an additional $51 million investment and 100 new jobs. 

Together, these expansions are expected to increase manufacturing capacity at the Memphis facility by approximately 50%, positioning it among the largest domestic power transformer manufacturing operations in the United States and currently the only U.S. facility dedicated to producing 765-kV transformers. 

Since establishing its U.S. operations in 2019 at the former Mitsubishi Electric Power Products transformer plant, Hyosung HICO has committed more than $300 million in total investment in the Memphis region. 

The project originally benefited from an incentive program approved by the Economic Development Growth Engine for Memphis and Shelby County, under which the company pledged to invest $86.9 million and create more than 400 jobs by 2027. That commitment was reportedly fulfilled two years ahead of schedule. 

With the latest expansion, Hyosung HICO continues to scale its manufacturing capabilities in response to growing demand for grid infrastructure upgrades, high-voltage transmission equipment, and domestic transformer supply capacity. 

Source: Daily Memphian