HD Hyundai Electric, a subsidiary of HD Hyundai specializing in power equipment, has announced plans to invest 400 billion won to expand its production capacity for ultra-high-voltage transformers. The investment will focus on bolstering both domestic and international facilities to address the rising demand for electricity, driven by the growth of artificial intelligence (AI) technologies and the rapid expansion of data centers.
Dual-Facility Expansion to Increase Production Capacity
The company will allocate 396.8 billion won to construct a new production facility at its Ulsan site in South Korea and build a second plant in Alabama, USA. This investment will enable HD Hyundai Electric to manufacture 765 kilovolt (kV) ultra-high-voltage transformers, the highest voltage currently utilized in the U.S. market. The expanded facilities aim to ensure the company can meet increasing market demands while staying competitive in the global power equipment sector.
Starting in 2028, HD Hyundai Electric expects the new facilities to generate an additional 300 billion won in annual sales. A company representative emphasized that this expansion aligns with the company’s strategy to address shifting U.S. trade policies and strengthen its position in the energy infrastructure market. In addition, the construction of a medium- and low-voltage circuit breaker plant in Cheongju is on track for completion in the second half of this year, further enhancing the company’s competitiveness in distribution equipment.
Strong Financial Performance and Strategic Outlook
HD Hyundai Electric reported robust preliminary results for the previous fiscal year, with sales of 3.3223 trillion won, a 22.9% year-over-year increase, and an operating profit of 669 billion won, up by 112.2%. This growth was attributed to increased demand for power equipment in key markets such as North America and higher product prices.
The company exceeded its 2023 order target of $3.743 billion, achieving $3.816 billion in orders, while the order backlog reached $5.541 billion, reflecting a 28.8% increase from the prior year. For 2024, HD Hyundai Electric has set ambitious goals with an order target of $3.822 billion and revenue target of 3.8918 trillion won, underscoring its confidence in sustained growth within the energy infrastructure industry.
