HD Hyundai Electric Expands U.S. Production Subsidiary, Solidifies Leadership in North American Extra High Voltage Power Transformer Market

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HD Hyundai Electric, a South Korean power equipment company, has commenced expanding its North American production subsidiary, HD Hyundai Power Transformers USA, in Montgomery, Alabama. The company held a groundbreaking ceremony for a second plant at the site, which will increase extra high voltage power transformer production capacity by 50% and establish manufacturing and testing capabilities for 765-kilovolt-class transformers. The $200 million investment is expected to generate an additional 200 billion won in annual revenue upon completion.

Why it matters

The expansion of HD Hyundai Electric's U.S. production subsidiary solidifies the company's leadership in the North American extra high voltage power transformer market. The new facility will support the expansion and modernization of the United States' backbone transmission network, a critical infrastructure for the country's energy needs.

The details

The new 312,000 square-foot facility will be constructed within the site of HD Hyundai Power Transformers USA, which was established in 2011 as the first U.S.-based transformer manufacturing subsidiary built by a Korean power equipment company. The company has previously invested $55 million in 2011, $44 million in 2018, and $19 million in 2023 to expand production space and build a dedicated transformer storage facility, demonstrating its continued commitment to local investment.

• The groundbreaking ceremony was held on March 6, 2026.
• The new facility is targeted for completion in April 2027.

What’s next

Upon completion of the second plant, HD Hyundai Electric plans to hire an additional 200 employees.