Hyundai Electric acquires transformer plant in the U.S.
Hyundai Electric & Energy Systems said Sunday it has acquired a transformer plant in the United States owned by its sister company, Hyundai Heavy Industries, seeking to tap deeper into the North American market and brace for potential trade barriers.
Hyundai Electric said it purchased a full stake in the plant in Alabama for 30.9 billion won ($28.9 million). The factory, which currently employs 300 workers, was established by Hyundai Heavy Industries in 2010.
The plant has annual production capacity of 14,000MVA, which translates into 80 transformers.
Hyundai Electric said it plans to inject an additional 35 billion won to adopt smarter production procedures for the newly acquired plant with a goal to post sales of $200 million by 2021, double the 2017 amount.
The acquisition of the U.S. plant adds to Hyundai Electric’s global network in Bulgaria and China.