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Hyosung Heavy Industries has won a $540 million contract with a major U.S. transmission grid operator to supply ultra-high-voltage transformers and reactors. The agreement spans five years, through January 31, 2031, and is the largest single-project U.S. contract ever awarded to a Korean power equipment manufacturer.

The equipment will be used to construct a 765-kilovolt transmission network, a critical system for transmitting large volumes of electricity over long distances while minimizing power losses. Rising demand for such infrastructure is being driven by the growth of AI data centers and the increasing adoption of electric vehicles.

Hyosung Heavy Industries operates a major manufacturing facility in Memphis, Tennessee, acquired from Mitsubishi and refurbished through a $300 million investment. The plant is undergoing a capacity expansion, scheduled for completion in 2027, including a $157 million investment to double output.

The company currently holds nearly half of the U.S. market share for 765-kilovolt ultra-high-voltage transformers, positioning it as a leading supplier in the segment.

Cho Hyun-joon, chairman of Hyosung Group, highlighted the strategic importance of the project, emphasizing that the expansion of power infrastructure is “directly tied to national security.”

This contract reinforces Hyosung Heavy Industries’ presence in the U.S. energy sector and strengthens its role in supplying advanced ultra-high-voltage technology to support the country’s growing electricity demand.

Source: koreajoongangdaily.joins.com