Hyosung secures record power equipment deal in US

Hyosung Heavy Industries' transformer plant in Memphis, Tenn. / Courtesy of Hyosung Heavy Industries

Hyosung Group Chairman Cho Hyun-joon / Courtesy of Hyosung Group

Hyosung Heavy Industries has clinched its single largest power equipment contract in the United States under the bold leadership of Hyosung Group Chairman Cho Hyun-joon, the company said Tuesday.

Under the deal with a leading U.S. transmission system operator, worth 787 billion won ($540 million), Hyosung will provide its 765-kilovolt (kV) ultra-high-voltage transformers, reactors and other power equipment.

The deal marks the largest single-project order secured by a Korean power equipment manufacturer in the U.S.

The latest achievement follows Hyosung Heavy Industries’ landmark contract in the U.S. last year to supply a full package of ultra-high-voltage equipment — including 765kV transformers and 800kV circuit breakers. The new contract has enabled the company to further solidify its dominant position in the U.S. 765kV transmission market.

U.S. electricity demand is projected to rise by 25 percent over the next decade, driven by the rapid expansion of artificial intelligence (AI) data centers and electric vehicle adoption, according to the Hyosung affiliate.

To meet growing demand and reduce transmission losses, major U.S. utilities are accelerating plans to build 765kV transmission networks, which can carry large volumes of electricity over long distances more efficiently than existing systems.

Hyosung Heavy Industries has supplied nearly half of the 765kV transformers currently installed in the U.S. grid and has held the top market share since the early 2010s. The company is the only manufacturer operating a U.S. production base for designing and manufacturing 765kV transformers.

Hyosung’s Memphis plant in Tennessee has been in operation since 2020, serving as a key base for supplying its advanced transformers to U.S. clients. After acquiring the facility, Hyosung has since invested 440 billion won to expand its production capacity.

Cho said power grids have become a matter of national security amid the AI-driven surge in electricity demand.

“With our Memphis facility and ultra-high-voltage technology, Hyosung Heavy Industries must establish itself as an indispensable partner in stabilizing the U.S. power grid,” he said.

Buoyed by solid exports of its key power equipment, Hyosung Heavy Industries reported robust operating profit of 747 billion won last year, up 106 percent from the previous year.