![Hyosung Heavy Industries' high voltage power transformer [HYOSUNG HEAVY INDUSTRIES]](https://imgnews.pstatic.net/image/640/2025/09/22/0000077119_001_20250923125017952.jpg?type=w860)
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With U.S. demand for power equipment surging, over 80 percent of the market is met through imports. Hyosung Heavy Industries, a Korean transformer maker, is moving to seize the opportunity and fill the domestic production void.
A few years ago, an urgent call reached Hyosung Heavy Industries from a U.S. client that products sourced from the Korean firm's primary market rival failed to meet performance expectations, creating operational delays and significant pressure on schedules.
The utility provider turned to Hyosung and urgently required a replacement — custom-built and delivered within six months. Hyosung accepted the order, engineering four extra high-voltage transformers that met the client’s precise requirements. The product was delivered within the allotted time frame.
“I believe that any company can operate when circumstances are normal, but it takes a truly exceptional company to answer the call when faced with unique and challenging situations. We are up to that task time and time again,” said Jason Neal, president of Hyosung HICO, Hyosung Heavy Industries' high-voltage power transformer manufacturing arm, in a written interview with the Korea JoongAng Daily.
![Jason Neal, president of Hyosung HICO. [HYOSUNG HEAVY INDUSTRIES]](https://imgnews.pstatic.net/image/640/2025/09/22/0000077119_002_20250923125018089.jpg?type=w860)
Although Hyosung entered the U.S. transformer market in 2001, it was not until 2019 that it established a production foothold through the acquisition of Mitsubishi’s plant in Memphis, Tennessee. The acquired facility formerly specialized in shell form transformers — a design where windings are surroudned by the core — but Hyosung moved swiftly to retrofit the plant and retrain its work force in core form transformer technology — a transition to a design that positions the windings around the core's limbs, allowing for a compact structure and easier assembly, which paid off almost immediately in winning contracts.
It posted 362.5 billion won ($261 million) in operating profit last year, up 1,263 percent from 2021. Revenue soared 88 percent to 4.9 trillion won during the same period. Based on 2024 earnings, the power equipment business, like transformers, accounted for nearly 90 percent of the company’s overall sales.
HVDC: Hyosung’s bet on the grid of tomorrow
Hyosung has placed a strategic focus on High Voltage Direct Current (HVDC) transmission — a technology essential for the rapid expansion of AI infrastructure, data centers and renewable power generation that enables efficient long-distance power transfer, interconnecting asynchronous grids and integrating large-scale renewable energy sources.
Existing alternating current (AC)-based transmission networks are approaching their technical limits, and against this backdrop, HVDC is emerging as a core solution to reduce transmission losses, enhance grid stability and ensure the reliable delivery of electricity across extended distances.
As the only company in Asia with HVDC capabilities, Hyosung began investing in this technology decades ago, with Chairman Cho Hyun-joon’s commitment that always emphasized that HVDC is “not simply a transmission technology but a core enabler of the future energy market.”
Hyosung manufactures all key HVDC components in-house — including transformers, converters, breakers and control systems — enabling it to deliver a fully integrated AC–DC transmission solution.
“The HVDC market today is led by a small group of global players, but their supply capacity is limited, making it difficult to fully meet the surge in demand,” Neal said. “As the only company outside of these incumbents to have independently developed core HVDC technology, we are already receiving project inquiries for our HVDC systems from regions such as the United States and India.”
Also, as one of the few manufacturers capable of producing 765-kilovolt transmissions within the United States, Hyosung was invited to present its expertise before the Electric Reliability Council of Texas and the Texas Public Utility Commission. The demand for 765-kilovolt transmissions is not only soaring in Texas but also in the mid-Atlantic region.
Hyosung on Friday said it inked a 200 billion won deal with a large transmission network operator in the United States to offer 29 units of 765-kilovolt ultra-high voltage transformers and reactors, along with 24 units of 800-kilovolt circuit breakers. The equipment will be deployed in new transmission projects underway across the southern and eastern United States.
‘Cool industry’ sets sights on U.S. expansion
With the United States continuing to lead the world in AI, crypto and other emerging technologies, Hyosung is positioning itself to meet the surge in demand for advanced power infrastructure through a major expansion of its U.S. manufacturing capacity.
Hyosung is already in the process of turnkey construction of substations at various stages of construction and completion with over $2 billion invested.
“We are answering the call from our customers to expand our capabilities. We will invest $51 million, which will add 120 more jobs, and expand our capacity to produce units in Memphis,” Neal said.
The expansion — scheduled for completion by 2027 — will enable Hyosung HICO’s Memphis facility to increase its annual production of extra-high voltage transformers from approximately 100 units to nearly double that figure.
Its order book is already full through 2030. Hyosung secured 2.2 trillion won in new orders this quarter, bringing its order backlog to 10.7 trillion won. More than 50 percent of the new orders came from North American clients.
“It is an exciting time to be in this industry we share with our employees and families, as well as new hires. We have now become the ‘Cool Industry’ and we are positioned well for continued growth and success now and in the decades to come,” Neal said.
![Hyosung HICO employees take a photo at its transformer plant in Memphis, Tennessee. [HYOSUNG HEAVY INDUSTRIES]](https://imgnews.pstatic.net/image/640/2025/09/22/0000077119_004_20250923125018287.jpg?type=w860)
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