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Hyosung Heavy Industries breaks ground on new Changwon factory for HVDC transformers

Published: 30 Jul. 2025, 14:00 Updated: 30 Jul. 2025, 17:27

LIM JEONG-WON
[email protected]

Attendees at the groundbreaking ceremony for the Hyosung Heavy Industries' high-voltage direct current (HVDC) transformer plant are seen clapping during the event at Hyosung Heavy Industries' Changwon facility in Changwon, South Gyeongsang, on July 30. From left, Korea Electric Power Corporation Vice President Seo Chul-soo, South Gyeongsang Deputy Governor for Economic Affairs Kim Myeong-ju, Ministry of Trade, Industry and Energy Second Vice Minister Lee Ho-hyeon, People Power Party (PPP) Rep. Kim Jong-yang, Hyosung Vice Chairman Lee Sang-woon, Democratic Party National Rep. Huh Sung-moo and PPP Rep. Choi Hyung-du. [HYOSUNG GROUP]

Hyosung Heavy Industries broke ground Wednesday on a new factory at its Changwon complex to produce high-voltage direct current (HVDC) transformers, marking a major push into next-generation power transmission.

The company will invest 330 billion won ($238.7 million) over two years in HVDC infrastructure, including 254 billion won for the new plant. Once completed in July 2027, the facility will be Korea’s largest domestic base for voltage-source HVDC transformers, Hyosung said.

The 29,600-square-meter (318,612-square-foot) site will also support expanded production of large-capacity voltage-source converters and house ongoing research and development efforts.

Executives from Hyosung Group and Hyosung Heavy Industries joined government officials for the groundbreaking ceremony, including Second Vice Minister of Industry Lee Ho-hyeon and lawmakers from both the Democratic Party and People Power Party.

Hyosung developed Korea’s first 200-megawatt-class, voltage-source HVDC system in 2023 using proprietary technology. Since launching HVDC R&D in 2017, the company has invested more than 100 billion won in independent development.

Attendees look at a bird's-eye view of the Hyosung Heavy Industries' high-voltage direct current (HVDC) transformer plant during a groundbreaking event at Hyosung Heavy Industries' Changwon facility in Changwon, South Gyeongsang, on July 30. From left, Democratic Party Rep. Huh Sung-moo, Hyosung Vice Chairman Lee Sang-woon, and Ministry of Trade, Industry and Energy Second Vice Minister Lee Ho-hyeon. [HYOSUNG GROUP]

HVDC systems offer more efficient long-distance electricity transmission than conventional AC systems. Voltage-source HVDC also enables real-time, two-way power control — key for integrating renewable energy sources like wind and solar.

Globally, few companies dominate HVDC production. Hyosung’s move positions it as Korea’s only total solution provider in the field.

The new plant will boost Hyosung’s transformer production capacity by 20 percent starting in 2028. The added output will help meet rising global demand in both AC and DC transmission markets.

Hyosung’s technology is expected to play a vital role in Korea’s “West Coast Energy Expressway,” a national project linking renewable energy hubs in the southwest with Seoul by 2030. HVDC infrastructure is also critical to achieving Korea’s carbon neutrality and RE100 goals.

Hyosung Group Vice Chairman Lee Sang-woon delivers a congratulatory speech during a groundbreaking ceremony for a new manufacturing plant dedicated to high-voltage direct current (HVDC) transformers inside Hyosung Heavy Industries' Changwon facility in Changwon, South Gyeongsang, on July 30. [YONHAP]

Internationally, demand for HVDC is also rising sharply due to the expansion of cross-border transmission projects in Europe and surging energy needs from AI infrastructure in North America. The global HVDC market, valued at $12.2 billion in 2024, is projected to grow at an average annual rate of 8.1 percent, reaching $26.4 billion by 2034.

The global HVDC transformer market has long been dominated by a few multinational giants — GE, Siemens and Hitachi. But Hyosung Heavy Industries’ successful localization of HVDC transformer technology is expected to shake up the industry and raise alarms among those competitors, according to the company.

“Every field of heavy industry is important, but HVDC is the most critical — we must become the best in the world,” Hyosung Group Chairman Cho Hyun-joon said.“We have more potential than any other company, and we must work to become a game changer.”

Hyosung plans to use the new plant as a springboard for overseas expansion and is currently negotiating several international HVDC projects.

“Voltage-type HVDC technology, long dominated by foreign firms, must be developed domestically to remain competitive,” said Hyosung Group Vice Chairman Lee Sang-woon at the event. “As Korea’s leading energy solutions provider, Hyosung Heavy Industries is ready to lead HVDC innovation and establish the identity of ‘K-Power.’”

BY LIM JEONG-WON [[email protected]]