Hyosung Heavy Industries secures $540 million ultra-high-voltage transformer contract in U.S.

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Hyosung Heavy Industries secures $540 million ultra-high-voltage transformer contract in U.S.

Published: 10 Feb. 2026, 17:02

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Hyosung Heavy Industries' tranformer manufacturing plant in Memphis, Tennessee [HYOSUNG HEAVY INDUSTRIES]

Hyosung Heavy Industries has clinched a $540 million contract with an undisclosed major U.S. transmission grid operator to supply ultra-high-voltage transformers and reactors, the company said Tuesday.

The deal, which runs for five years through Jan. 31, 2031, marks the largest single-project contract ever secured by a Korean power equipment manufacturer in the United States.

The equipment will be deployed in the construction of a 765-kilovolt transmission network across the United States, a system critical for transmitting large volumes of electricity over long distances while significantly reducing power losses. Demand for such infrastructure has surged amid the rapid expansion of AI data centers and the growing adoption of EVs.

Hyosung operates a large manufacturing facility in Memphis, Tennessee — formerly owned by Mitsubishi — which it acquired and refurbished through an investment of roughly $300 million. The plant is currently undergoing a capacity expansion scheduled for completion in 2027.

Hyosung Heavy Industries' high voltage power transformer [HYOSUNG HEAVY INDUSTRIES]

Hyosung supplies nearly half of all 765-kilovolt ultra-high-voltage transformers installed in the United States, maintaining the top market share in the segment.

“As AI and data centers proliferate, power infrastructure has become a core industry directly tied to national security,” said Cho Hyun-joon, chairman of Hyosung Group. “Building on our Memphis facility and our ultra-high-voltage technology, we must establish ourselves as an indispensable partner in the U.S. power grid.”

BY SARAH CHEA [[email protected]]