HHI opens US transformer plant

By Kim Yoo-chul

Hyundai Heavy Industries (HHI), the world’s biggest shipyard, started the operation of an advanced manufacturing plant in the United States last week, aimed at boosting its presence in North America.

The $108 million plant in Montgomery, Ala. is going to manufacture power transformers for public and private utility firms. It is the first one owned by a South Korean company.

The plant currently has a regular staff of about 100 and is expected to eventually employ about 500. The annual production capacity from the site could reach 200 transformers, Hyundai said in a release Sunday.

``The plant will help us guarantee on-time product delivery and cut logistics costs,’’ said Hyundai spokeswoman Lee Min-yeong, adding HHI is also eyeing countries in South America.

North America is the world’s biggest power transformer market with a value of over $4.3 billion by 2015 from an estimated $3.9 billion next year, according to market research firms.

Hyundai has so far been sold over 1,500 power transformers in North America since 1982, the statement said.

HHI already operates power transformers at the company’s home-town of Ulsan, while the shipyard also runs one in Sofia, Bulgaria, Lee said.

Alabama Governor Robert Bentley and HHI chief executive Lee Jae-sung, along with community leaders joined the opening ceremony.

``This is certainly the type of industry, the type of jobs that we want for this state,’’ Bentley said.

He also praised Hyundai Heavy as the latest in a long line of international firms that have decided to locate in Alabama.

HHI is diversifying its business portfolio away from its heavy dependence on shipbuilding-related areas as a strategy to beat the industry’s cyclical ups and downs.