Hyosung Heavy Industries is accelerating its expansion in the U.S. power equipment market by strengthening its local manufacturing capabilities to address rapidly growing demand for electricity infrastructure fueled by artificial intelligence (AI), data centers, and grid modernization projects.
According to industry sources on June 14, Hyosung Heavy Industries' U.S. subsidiary, Hyosung HICO, has signed an agreement with a subsidiary of Quanta Services to establish a joint venture, Hyosung HICO Breaker, for the production of ultra-high-voltage gas circuit breakers (GCBs).
The new company is scheduled to launch in July and begin manufacturing operations in October at a facility in Canonsburg, Pennsylvania. The plant will produce circuit breakers ranging from 72.5kV to 800kV, supplying critical equipment to U.S. power grids and large-scale industrial facilities.
With this investment, Hyosung Heavy Industries will establish an integrated U.S. production system capable of manufacturing both power transformers and ultra-high-voltage circuit breakers locally. The company said it will become the first Korean power equipment manufacturer to produce both key power transmission products in the United States.
Industry observers note that demand for power infrastructure equipment in North America has surged in recent years. The rapid expansion of AI-driven data centers, increasing electrification initiatives, renewable energy integration, and aging grid replacement projects have created significant demand for transformers, circuit breakers, and other essential grid components.
By expanding local production, Hyosung aims to improve delivery times and better respond to customers' growing emphasis on supply chain resilience. The company also expects that increasing its U.S.-made product portfolio will enhance competitiveness in a market where locally manufactured equipment is increasingly preferred.
Quanta Services, Hyosung's joint venture partner, is one of the largest energy and infrastructure companies in the United States. The company operates across power transmission and distribution, power generation facilities, energy storage systems, and data center infrastructure, supported by an extensive customer network nationwide.
The latest partnership is viewed as an extension of the long-standing cooperation between the two companies, which have previously collaborated on substation projects, power equipment supply, and renewable energy-related initiatives.
The joint venture also aligns with the broader North American growth strategy championed by Hyosung Chairman Cho Hyun-joon, who has been actively involved in expanding the group's U.S. operations. Earlier this year, Cho reportedly met with Quanta executives in the United States to discuss future cooperation and finalize plans for the joint venture.
Looking ahead, Hyosung Heavy Industries plans to expand collaboration beyond circuit breakers into high-voltage direct current (HVDC) solutions and data center power infrastructure. The company aims to evolve from a power equipment supplier into a comprehensive power solutions provider covering design, operation, and maintenance services.
"With the rapid growth of the AI industry, the importance of expanding power infrastructure has never been greater," said Chairman Cho Hyun-joon. "Leveraging our local manufacturing capabilities and operational expertise in the United States, we will continue to deliver optimal power solutions to customers and further strengthen our competitiveness in the North American market."
Industry analysts expect the new venture to enhance Hyosung's position in one of the world's fastest-growing power infrastructure markets while supporting the modernization of critical energy networks across North America.
