Hyosung Heavy Industries Corp., a leading South Korean power systems and machinery company, has announced plans to nearly double its annual transformer production in the United States, aiming to capture over 10% of the U.S. market within two years, according to The Korea Economic Daily.

Hyosung HICO Ltd., the company’s U.S.-based transformer manufacturing unit, is set to increase its production capacity at its Memphis, Tennessee plant from the current 130 units to more than 250 units by 2027. The first phase of expansion will see production rise to 200 units by early 2026, followed by an increase to over 250 the following year. The total investment is expected to reach hundreds of millions of U.S. dollars.

After it completes the plant’s capacity expansion, Hyosung HICO is expected to command more than a 10% share in the US transformer market versus last year’s 6%, said Jason E. Neal, the president of Hyosung HICO.

Neal projected Hyosung’s transformer sales and output in the US would beat those of the market’s current leaders within two years to become the largest US transformer producer and seller.

Neal attributes this optimism to the company’s substantial order backlog, which covers five years of production. The surge in demand is driven by the replacement of aging power equipment and the expansion of AI-powered data centers requiring new infrastructure across the U.S.

Hyosung HICO recently completed and delivered eight transformers for Silicon Ranch, a major independent power producer specializing in solar energy and battery storage.

Source: The Korea Economic Daily