Home > Business > Industry

Hyosung Heavy Industries to invest $157M to double capacity at Memphis transformer plant

Published: 18 Nov. 2025, 14:45

KIM JU-YEON
[email protected]

Hyosung Heavy Industries' high-voltage transformer plant in Memphis, Tennessee, is pictured in this undated photo provided by the company. [HYOSUNG]

Hyosung Heavy Industries said Tuesday it will invest $157 million in its Memphis high-voltage transformer plant in Tennessee to more than double the factory's production capacity by 2028.

The planned expansion will make the facility, acquired by Hyosung in 2020, the nation’s largest by transformer production capacity. Hyosung said it made the investment on expectations that demand for transformers will rise alongside AI-driven growth in data centers and the need to replace aging electric infrastructure.

The Memphis plant is the only facility in the United States that can design and manufacture 765-kilovolt, ultra-high-voltage transformers. Hyosung has maintained its market leader position in the country for 765kV transformers since the early 2010s, supplying nearly half of all 765 kilovolt transformers installed on the U.S. power grid.

The company expects the U.S. transformer market to grow at an annual rate of about 7.7 percent, up from $12.2 billion in 2024 to $25.7 billion by 2034, based on data from Global Market Insights.

Power utilities have already committed to supply 116 gigawatts of new power to data centers — about 15.5 percent of current peak U.S. electricity demand — as of October and plan to add another 309 gigawatts by 2040, according to research firm Wood Mackenzie.

The investment in the Memphis plant was spearheaded by Hyosung Group Chairman Cho Hyun-joon, the company said.

“The future of the power industry depends not just on equipment, but on the ability to manage power flows, storage and system stability in an integrated way," Cho said through Hyosung's press release.

He added that the company will strengthen its position as a global total-solution provider by building on the increased presence it gains in the North American market through the investment.

Hyosung posted 1.6 trillion won (1.09 billion) in revenue and 219.8 billion won in operating profit in this year's third quarter — its highest-ever quarterly results. Its global order backlog reached 11 trillion won, up 52 percent from last year.

BY KIM JU-YEON [[email protected]]