Under the direct leadership of Chairman Cho Hyun-joon of Hyosung, Hyosung Heavy Industries won the largest order in its history in the U.S. power market. Hyosung Heavy Industries said on the 10th that it signed a contract worth about 787.0 billion won with a leading U.S. transmission system operator to supply power equipment including 765-kilovolt (kV) ultra-high-voltage transformers and reactors. Among Korean power equipment corporations that have entered the U.S. market, this contract is the largest single-project order to date.
Previously, Hyosung Heavy Industries also signed in the U.S. last year the first "full package" supply contract by a Korean corporations for power equipment, including 765kV ultra-high-voltage transformers and 800kV ultra-high-voltage circuit breakers. This year as well, it continued large orders, cementing its dominant position in the U.S. 765kV market.
The United States is expected to see power demand surge about 25% over the next 10 years as artificial intelligence (AI) data centers spread and electric vehicle adoption expands. Major power operators are accelerating the build-out of 765kV transmission networks that can stably transmit large-capacity electricity over long distances. Compared with existing 345kV and 500kV lines, 765kV has the advantage of significantly reducing transmission losses.
A 765kV ultra-high-voltage transformer is a power device with high barriers to entry, requiring high-level design capabilities, high-voltage insulation technology, and rigorous testing and verification. Since establishing its U.S. subsidiary in 2001, Hyosung Heavy Industries entered the market by exporting a 765kV ultra-high-voltage transformer to the United States in 2010, the first among Korean corporations. In 2020, it built a transformer plant in Memphis, Tennessee. This plant is currently the only production base in the United States that can design and manufacture 765kV ultra-high-voltage transformers.
Hyosung Heavy Industries currently supplies nearly half of the 765kV ultra-high-voltage transformers installed on the U.S. transmission grid. Since the early 2010s, it has held the No. 1 market share in that market. It can supply not only 765kV transformers but also 800kV ultra-high-voltage circuit breakers. Its plan goes beyond simple equipment supply to establish itself as an indispensable core partner in upgrading the U.S. transmission network.
The company said this order is a case where the chairman's long-term strategy and determination bore fruit. Hyosung Chairman Cho Hyun-joon said, "With the spread of artificial intelligence (AI) and data centers, power infrastructure has become a core industry directly linked to national security," adding, "Based on Hyosung Heavy Industries' Memphis plant and ultra-high-voltage technology, we will establish ourselves as an irreplaceable core partner for stabilizing the U.S. power grid."
Meanwhile, Hyosung Heavy Industries achieved its largest annual results last year, posting 5.9685 trillion won in sales and 747.0 billion won in operating profit on a consolidation basis. Its global order backlog was 11.9 trillion won, up about 34% from the previous year.