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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] HD Hyundai Electric, the power company of HD Hyundai, plans to invest approximately 400 billion KRW (around 300 million USD) by early next year to increase production capacity at its transformer plants in Ulsan, South Korea, and Alabama, USA, by up to 30%.
This decision comes as global power demand surges due to the rapid spread of artificial intelligence (AI), driving increased power generation and soaring demand for transmission and distribution networks, including transformers and cables. In particular, the U.S. market, with its aging infrastructure, is expanding rapidly.
According to industry sources on Sunday, HD Hyundai Electric will expand its Ulsan and Alabama plants, increasing their combined production capacity from the current 400 units per year to around 510 units by early next year. Ultra-high-voltage transformers are expensive power devices, priced between 6 billion and 13 billion KRW (roughly 4.5 million to 10 million USD) each, and serve as core equipment for transmission and distribution networks.
Having secured orders equivalent to approximately five years of work, HD Hyundai Electric predicts that the boom in power equipment, especially in the U.S., will last longer. As a result, the company has decided on its largest investment since its spin-off in 2017.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
