Hyosung Heavy Industries, a key subsidiary of Hyosung Group, is accelerating its expansion of ultra-high voltage transformer production in Memphis, Tennessee, to meet soaring U.S. power infrastructure demand.

The Memphis plant—acquired in 2020—is currently the only facility in the United States capable of producing 765kV ultra-high voltage transformers, critical for modernizing aging grid systems and powering large-scale AI data centers, semiconductor factories, and EV battery plants. Responding to capacity constraints, Hyosung is now planning a significant expansion that could increase annual output to 200 units.

In Q1 2025, Hyosung Heavy Industries posted record operating profits of 102.4 billion won (up 82.3% YoY), supported by a 9.3% increase in sales to 1.0761 trillion won. Around 70% of its U.S. sales come from locally manufactured products. The company’s Memphis-based subsidiary, Hyosung HICO, has also qualified for federal tax credits under the Inflation Reduction Act, covering up to 30% of eligible investments.

The expansion positions Hyosung as a crucial domestic supplier amid a nationwide grid overhaul and aligns with U.S. efforts to reduce reliance on imported electrical components.

A company representative stated, “We are considering additional expansion of our U.S. plant to meet demand that exceeds current capacity.”

The move reflects Hyosung Group Chairman Cho Hyun-joon’s active engagement in the board to strengthen the power equipment business amid favorable market conditions.