MEMPHIS, TN - In a historic first for a South Korean firm, Hyosung Heavy Industries has secured a major contract to supply a full suite of power solutions, including ultra-high-voltage transformers, reactors, and circuit breakers, for the U.S. electrical grid. The deal, signed with one of the largest grid operators in the United States, marks a significant entry for a Korean company into the U.S. 765kV transmission market.
While the specific customer and total value of the contract were not disclosed due to a confidentiality agreement, Hyosung Heavy Industries announced that the order is valued at over 200 billion Korean won (approximately $150 million USD). The company has already begun supplying the equipment, which includes 29 765kV ultra-high-voltage transformers and reactors, and 24 800kV ultra-high-voltage circuit breakers. This new equipment is slated for use in the construction of new 765kV transmission lines in the Southern and Eastern U.S.
The move comes at a crucial time for the American power sector. With the rapid expansion of industries like AI and electric vehicles, electricity demand in the U.S. is projected to grow by 25% over the next decade. The nation's aging grid infrastructure is struggling to keep pace, making the 765kV transmission system a key solution. This advanced technology offers a major advantage over older 365kV and 500kV systems by significantly reducing transmission loss and enabling the efficient, long-distance transfer of large-capacity power.
Hyosung Heavy Industries attributes its success in securing this contract to its world-class production capabilities and quality management technology for 765kV transformers. The company’s Memphis, Tennessee, plant is currently the only facility in the U.S. with the capability to design and produce these complex ultra-high-voltage transformers. The company's U.S. subsidiary, Hyosung HICO, has also qualified for federal tax credits under the Inflation Reduction Act, further strengthening its position in the domestic market.
Woo Tae-hee, CEO of Hyosung Heavy Industries, emphasized the company’s strength in providing comprehensive total solutions for various power facilities. "We will solidify our unique position in the U.S. 765kV transmission market, which is expected to experience explosive growth in the future," he stated.
This landmark deal not only positions Hyosung Heavy Industries as a key player in the modernization of the American power grid but also underscores the company's commitment to expanding its global footprint. As the U.S. government and private sector continue to invest in grid modernization to meet surging demand, Hyosung's local manufacturing presence and advanced technology will be critical in shaping the future of the nation's energy infrastructure. The company plans to double its Memphis plant's production capacity to meet this escalating demand, demonstrating its long-term strategy and commitment to the U.S. market.
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