Seoul: Hyosung Heavy Industries Co. announced that it has secured contracts valued at 386.5 billion won (US$286.7 million) to supply power transformers to two major U.S. technology companies. This move aligns with Hyosung Group Chairman Cho Hyun-joon's strategic focus on expanding the group's presence in the artificial intelligence (AI) infrastructure sector.
According to Yonhap News Agency, the South Korean firm will deliver 765-kilovolt (kV) ultra-high-voltage transformers worth 220 billion won for an AI data center situated in the southern United States. Additionally, they will supply 345-kV transformers valued at 166.5 billion won for another facility located in the northern region of the country. These contracts are part of Hyosung Group's efforts to expand its power equipment business amid the increasing electricity demands fueled by the growth of AI data centers across the U.S.
Chairman Cho emphasized the significance of this development, stating, "With demand for power infrastructure surging in the AI era, the industry is entering a supercycle for the first time in 60 years." He further elaborated on Hyosung's ambition to become one of the top three global players within the next five years by offering comprehensive power solutions, including transformers, circuit breakers, and power stabilization systems such as high-voltage direct current (HVDC), static synchronous compensators (STATCOM), and energy storage systems (ESS).
The company has also taken proactive steps to strengthen its local production capabilities in North America. This includes the ongoing expansion of its transformer manufacturing facility in Memphis, Tennessee. In July, Hyosung Heavy entered into a joint venture with North American energy infrastructure company Quanta to locally produce ultra-high-voltage circuit breakers.
Hyosung Heavy has maintained a dominant position in the U.S. 765-kV ultra-high-voltage transformer market since the early 2010s, supplying approximately half of all such transformers installed on the U.S. power grid. The company reported cumulative orders totaling 9.3 trillion won in the first eight months of this year, surpassing its full-year order total from the previous year. Consequently, Hyosung Heavy has increased its annual order target to 12 trillion won from the earlier 8.4 trillion won.