MEMPHIS, TENNESSEE - After Hyosung Heavy Industries (HICO) recently announced it is buying Mitsubishi Electric transformer production facility in Memphis, the company has been granted an 11-year, $10.4 million tax break by the Economic Development Growth Engine for Memphis & Shelby County (EDGE).

For the tax break, HICO committed to hiring 131 people and investing $103 million in its first two years, reports Memphis Business Journal.

This investment is substantially more than the $87 million announced on December 13, when Tennessee Governor Bill Lee and HICO officials announced that Hyosung will locate its first U.S. transformer production operations in Memphis.

HICO executive Yong Tae Sohn told the EDGE board the company chose Memphis because of the former Mitsubishi workers it will be able to hire.

HICO's deal with Mitsubishi Electric is set to close in February, which would allow production to begin in the first half of 2020.

At the Memphis facility, HICO will be manufacturing core-form power transformers, as opposed to the larger, shell-form transformers Mitsubishi Electric was producing.

Source: Memphis Business Journal