New export-dedicated plant completed in Changwon… Production capacity for 420kV and above doubled
Secures KRW 386.5 billion in orders from U.S. big tech… Parallel expansion of local production hubs
The expansion of artificial intelligence (AI) data centers and global transmission grid investments is driving the capacity buildup of domestic power equipment manufacturing facilities. Hyosung Heavy Industries (298040) has doubled its ultra-high-voltage circuit breaker production capacity in Changwon, following large-scale power equipment orders from North American big tech companies. The company is also accelerating its penetration into the global power grid market by expanding its local production footprint in the United States.
On the 16th, Hyosung Heavy Industries completed a new, approximately 18,996-square-meter plant dedicated to export-bound ultra-high-voltage circuit breakers in Changwon, South Gyeongsang Province. The new facility manufactures 420kV, 550kV, and 800kV products, effectively doubling the Changwon plant's production capacity for ultra-high-voltage circuit breakers of 420kV and above.
Establishment of an Export-Dedicated Production System… Core Component Output Doubled
Hyosung Heavy Industries restructured its existing circuit breaker plant to focus primarily on domestic demand while separating production lines so that the new facility handles overseas export volumes exclusively. It has also established a streamlined, turnkey production system encompassing all stages from component manufacturing to assembly, testing, and shipping under one roof.
Production capacity for insulators, a key component, has also been doubled. Insulators prevent electricity from flowing along unintended paths inside ultra-high-voltage power equipment. Hyosung Heavy Industries noted that it possesses the only in-house production facilities for ultra-high-voltage circuit breaker insulators among domestic power equipment manufacturers. By enhancing its self-sufficiency in core components, the company plans to strengthen its delivery turnaround for large-scale overseas projects.
Ultra-high-voltage circuit breakers are devices that protect transformers and transmission facilities by interrupting current when faults or abnormal surges occur in transmission grids. Along with transformers that convert voltage, they are considered core equipment required for large-scale power grid operations.
In the U.S. and Europe, AI data center construction and the replacement of aging transmission grids are being pursued simultaneously. As the stable supply of not only transformers for bulk power delivery, but also circuit breakers to protect transmission networks becomes increasingly critical, manufacturing capacity and delivery lead-time responsiveness are emerging as key competitive edges for power equipment makers.
Hyosung Heavy Industries has accumulated related technologies beginning with the development of a 170kV gas-insulated switchgear in 1978. In 2024, it became the first domestic power equipment company to surpass KRW 10 trillion in cumulative circuit breaker production.
KRW 386.5 Billion in U.S. Big Tech Orders… Simultaneous Expansion of North American Production Bases
In September, Hyosung Heavy Industries signed ultra-high-voltage transformer supply contracts totaling KRW 386.5 billion with two U.S. big tech companies. The deals comprise KRW 220 billion for 765kV products and KRW 166.5 billion for 345kV products, which are scheduled to be supplied to new AI data centers under construction in the southern and northern regions of the United States.
As of mid-September announcements, this year's new order intake reached approximately KRW 9.7 trillion, surpassing last year's annual total of KRW 7.6 trillion. With AI data centers and expanded grid investments fueling massive orders, the company is accelerating the expansion of its manufacturing facilities.
The company is also reinforcing its local production foundation in the United States. This year, Hyosung Heavy Industries established a joint venture for ultra-high-voltage circuit breakers with North American power infrastructure firm Quanta. It is pursuing the production of 72.5kV to 800kV circuit breakers at its plant in Canonsburg, Pennsylvania.
The company has invested approximately $300 million to date in its Memphis, Tennessee ultra-high-voltage transformer plant—acquired in 2020—with additional expansions currently underway. Upon completion of these expansions, the company expects to secure the largest ultra-high-voltage transformer production capacity in the United States.
This strategy involves expanding production of export-bound ultra-high-voltage circuit breakers at the domestic Changwon plant while strengthening local manufacturing and transformer supply capabilities in the U.S. The company also plans to leverage its production facility in India and its research and development (R&D) center in the Netherlands to expand its global supply chain.
The business scope is also broadening from individual power equipment supplies to integrated power solutions. In September, Hyosung Heavy Industries established a dedicated Data Center Business Team, integrating engineering personnel for power stabilization facilities such as transformers, circuit breakers, energy storage systems (ESS), microgrids, and STATCOMs.
Regarding the U.S. big tech orders in September, Hyosung Group Chairman Cho Hyun-joon stated, "Based on our total solution competitiveness encompassing not only transformers and circuit breakers, but also power stabilization systems like HVDC, STATCOM, and ESS, we will propel Hyosung Heavy Industries into the global top three within five years."
