Hyosung Heavy Industries said on February 10 that it has signed a power equipment supply contract worth approximately 787 billion won ($590 million) with a major U.S. transmission system operator.
The deal covers the supply of 765-kilovolt (kV) ultra-high-voltage transformers and reactors. On a single-project basis, the contract is the largest ever secured by a Korean power equipment company in the U.S. market.
Hyosung Heavy Industries has continued to expand its presence in the United States. Last year, the company became the first Korean firm to secure a full-package power equipment contract in the U.S., supplying 765kV ultra-high-voltage transformers along with 800kV ultra-high-voltage circuit breakers.
U.S. utilities are accelerating investments in 765kV transmission networks as electricity demand rises due to the construction of AI data centers and the growing adoption of electric vehicles. Compared with existing 345kV and 500kV systems, 765kV transmission lines can carry significantly larger volumes of power over longer distances while reducing transmission losses.
Hyosung Heavy Industries has established an integrated production system capable of manufacturing both 765kV transformers and 800kV ultra-high-voltage circuit breakers. The company said it has supplied nearly half of the 765kV transformers currently installed across the U.S. transmission grid and has maintained the top market share in the segment since the early 2010s.
The company established its U.S. subsidiary in 2001 and became the first Korean firm to export 765kV ultra-high-voltage transformers to the U.S. in 2010. In 2020, Hyosung Group Chairman Cho Hyun-joon approved the acquisition of a transformer manufacturing plant in Tennessee. Including ongoing expansion, total investment in the facility amounts to about $300 million.
The Memphis plant is currently the only facility in the United States capable of designing and producing 765kV ultra-high-voltage transformers. Hyosung applies the same quality control systems and technical standards used at its Changwon plant in Korea to maximize local production capabilities.
The latest contract was led directly by Chairman Cho, who has cultivated relationships with senior figures in the U.S. energy sector, including Energy Secretary Chris Wright, as well as executives from major power and utility companies.
Cho said that as AI and data center expansion accelerates, power infrastructure has become a critical industry closely tied to national security, adding that Hyosung Heavy Industries aims to establish itself as a key partner in stabilizing the U.S. power grid based on its Memphis manufacturing base and ultra-high-voltage technology.
