HD Hyundai Electric has begun expanding its North American manufacturing subsidiary. It plans to cement its leadership in the North American extra-high-voltage transformer market.
HD Hyundai Electric said on the 8th that it held a groundbreaking ceremony for its second plant on the 6th local time at its North American manufacturing subsidiary in Montgomery, Ala.
The ceremony was attended by President Kim Young-gi of HD Hyundai Electric, Consul General Lee Jun-ho in Atlanta, and Alan McNair, Alabama secretary of commerce.
The second plant, to receive an investment of about $200 million (298.1 billion won), will be built on a 29,000-square-meter (about 8,800-pyeong) site within the North American subsidiary's grounds. Completion is scheduled for April next year.
HD Hyundai Electric plans to increase its extra-high-voltage transformer production capacity by 50% compared with the current level through the second plant.
It also plans to establish testing and production facilities at the second plant for 765 kV-class extra-high-voltage transformers, for which demand has risen to build out the U.S. extra-high-voltage transmission grid.
HD Hyundai Electric's North American manufacturing subsidiary is a U.S.-based transformer production plant established in 2011, the first in Korea's power equipment industry. It is also the largest power transformer manufacturing facility in the United States.
HD Hyundai Electric invested 59.5 billion won when it established the subsidiary and expanded production space with an additional 53.7 billion won in 2018. In 2023, it also expanded a dedicated storage facility for transformers with an investment of 18.3 billion won.
With this local production base, HD Hyundai Electric reduced lead times while improving responsiveness to customers and strengthened its competitiveness in the North American market.
Sales, which were at the $100 million level in 2017, increased to about $400 million in 2025, and headcount expanded from around 100 in 2011 to around 300 in 2017 and about 460 in 2025. When the second plant is completed, it plans to hire about 200 more people.
An HD Hyundai Electric official said, "We will successfully complete this second plant and, creating synergy with the expansion of the Ulsan plant scheduled for completion in September this year, strengthen our leadership in the North American extra-high-voltage transformer market."