HD Hyundai's power equipment subsidiary HD Hyundai Electric announced on the 20th that it will make an investment of 400 billion won to expand its domestic and international ultra-high-voltage transformer production facilities to meet the increasing demand for electricity driven by the rise in artificial intelligence (AI) demand and the expansion of data centers.
HD Hyundai Electric will invest a total of 396.8 billion won in building a new production facility at its Ulsan site and establishing a second plant in Alabama, USA. The company plans to secure production capacity for 765 kilovolt (kV) ultra-high-voltage transformers through this expansion investment. The 765 kV is currently the maximum voltage specification handled in the United States.
HD Hyundai Electric anticipates that it will achieve a maximum annual sales increase of 300 billion won starting in 2028, when the investment effects begin to materialize. A representative from HD Hyundai Electric remarked, "By expanding production capacity, we will respond promptly to the rising demand for transformers while proactively preparing for changes in U.S. trade policies following the inauguration of the Trump administration. Furthermore, we will complete the construction of the new medium and low voltage circuit breaker plant in Cheongju, scheduled to be completed in the second half of this year, without any setbacks to strengthen our competitiveness in the distribution equipment business."
HD Hyundai Electric also revealed that its preliminary results for last year recorded sales of 3.3223 trillion won and an operating profit of 669 billion won. Compared to the previous year, sales increased by 22.9% and operating profit rose by 112.2%. The company explained that the increase in demand for power equipment in overseas markets such as North America and the rise in product prices contributed positively.
HD Hyundai Electric's total order amount for last year exceeded the target of $3.743 billion, reaching $3.816 billion. The order backlog recorded $5.541 billion, reflecting a 28.8% increase from the previous year. HD Hyundai Electric has set this year's order target at $3.822 billion and revenue target at 3.8918 trillion won.