HD Hyundai Electric to invest $273.7 million in high-voltage transformers by 2026
Published: 20 Jan. 2025, 18:57
-
- LEE JAE-LIM
- [email protected]
![HD Hyundai Electric's U.S. subsidiary in Alabama [HD HYUNDAI ELECTRIC]](https://koreajoongangdaily.joins.com/data/photo/2025/01/20/c8ec330e-6a98-4227-9ecd-d71349801f67.jpg)
HD Hyundai Electric's U.S. subsidiary in Alabama [HD HYUNDAI ELECTRIC]
HD Hyundai Electric will spend 396.8 billion won ($273.7 million) by the end of 2026 to expand its domestic and overseas power facilities in response to the growing demand driven by the growth of AI-related applications and rising power needs of data centers.
The electric power affiliate of HD Hyundai will build a new ultra-high voltage transformer production facility at its existing Ulsan site and a second plant in Alabama, it announced through an electronic disclosure Monday. The expansion will secure production capacity for 756-kilovolt high-voltage transformers, which is the highest voltage specification currently used in the United States.
The company expects the expanded facilities to contribute up to 300 billion won in annual revenue starting in 2028.
HD Hyundai Electric aims to hedge against potential tariffs that U.S. President-elect Donald Trump has vowed to implement after taking office.
“Through the expansion, we aim to swiftly respond to increasing demand for transformers while proactively preparing for potential changes in U.S. trade policies with inauguration of the Trump administration,” an HD Hyundai Electric spokesperson said in a statement. “Moreover, we will focus on completing the construction of the new low-and-medium-voltage circuit breaker plant in Cheongju that is scheduled to be completed within the latter half of this year, to further strengthen our competitiveness in the power distribution equipment business.”
HD Hyundai Electric reported operating profit of 669 billion won for 2024 on Monday, a year-over-year surge of 111.2 percent, and revenue of 3.3 trillion won, a 22.9 percent on-year increase. Selective order intake and strong demand from the North American market fueled the improvements.
The company's total annual orders surpassed its target, reaching $3.816 billion, while order backlog jumped 28.8 percent on year to $5.541 billion.
BY LEE JAE-LIM [[email protected]]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)