Hyosung Heavy Industries is targeting the European market with an integrated power system solution. It plans to open a European research and development (R&D) center in mid-month and begin building a local network in earnest. Europe, where grid aging is severe, is making massive investments in building power infrastructure.
Hyosung Heavy Industries held an opening ceremony for the Hyosung Heavy Industries Europe R&D Center on the 17th (local time) at the industrial complex in Arnhem in eastern Netherlands. The R&D center was established in 2023 and has carried out research and development on eco-friendly circuit breakers, but decided to belatedly hold an opening ceremony to share the latest technologies with industry officials and build a human network. Cho Hyun-joon, chairman of Hyosung Group, has been shuttling between the United States and Europe, working hard to expand sales channels.
The R&D center focuses on developing SF₆-free gas-insulated switchgear circuit breakers (SF₆-Free GIS) that eliminate sulfur hexafluoride (SF₆), a potent greenhouse gas. Gas-insulated switchgear circuit breakers are key equipment used at power plants and substations to control power flows, and SF₆ gas is used in the insulation process. Europe is gradually regulating the use of SF₆ gas. There are also plans to expand the research scope into the HVDC (high-voltage direct current) field.
Europe is considered a core market for Hyosung Heavy Industries. More than 40% of the European grid has exceeded the 30–40 year design life for transmission and distribution networks, driving up demand for power equipment for replacement. The European Commission said that €584 billion (about 960 trillion won) in grid investment is needed by 2030 to solve grid problems.
Aging grids have high power loss rates and a greater risk of equipment failure. They can cause large-scale blackouts or hinder the expansion of renewable energy. This year, large-scale blackout incidents occurred in various countries, including Spain, Portugal, and France, paralyzing entire social systems.
Hyosung Heavy Industries has been building a track record in Europe, where demand for power equipment is growing, by signing supply contracts one after another. It rose to No. 1 in market share for 400 kV (kilovolt) transformers in the United Kingdom, Scotland, and Norway. Recently in Germany, it became the first domestic power equipment company to sign a long-term supply contract for extra-high-voltage transformers and reactors with a local transmission company. These are devices that play a key role in improving the stability and efficiency of the grid.
Hyosung Heavy Industries surpassed a cumulative 1 trillion won in orders in Europe this year. As of the first half, the company's global order backlog stands at about 10 trillion won. Sung Jong-hwa, a researcher at LS Securities, said, "As the power equipment industry enters a boom, strong sales momentum continues in the United States, Europe, and the Middle East."
According to FnGuide, Hyosung Heavy Industries' estimated results this year are 5.7099 trillion won in revenue and 606.8 billion won in operating profit. Compared with last year, revenue is up 16% and operating profit is up 67%.