USA, Tennessee, Memphis: Hyosung Heavy Industries has announced a new investment of $157 M to expand its high-voltage transformer factory in Memphis, Tennessee. The company says the upgrade will increase the plant’s production capacity by around 50 % through 2028, making it the largest transformer manufacturing site in the United States.
The Memphis facility is currently the only plant in the country capable of designing and manufacturing 765 kV ultra-high-voltage transformers. Hyosung estimates that it has supplied nearly half of all 765 kV transformers installed in the US grid since 2010. The company acquired the Memphis site from Mitsubishi Electric Power Products in 2019 and has committed more than $300 M to its development since then.
The latest investment was initiated by Hyosung Group Chair Cho Hyun-joon, who emphasised the need for stronger domestic production amid growing demand for power infrastructure linked to artificial intelligence. He stated that the future of the electricity sector depends on both equipment and the ability to manage power flow, storage and safety.
Rising electricity demand in the US is driven by ageing grid infrastructure and the rapid expansion of data centres. Market forecasts reflect this trend: Global Market Insights projects the US transformer market to more than double from $12.2 B in 2024 to $25.7 B by 2034, and Wood Mackenzie expects data centres to require 116 GW of new power supply, with further expansion through 2040.
Hyosung says the expansion in Memphis will strengthen its ability to meet future US power needs with locally manufactured transformers.
Source: The Korea Herald
