HD Hyundai Electric expands US transformer manufacturing capacity
VIPs pose during a groundbreaking event for HD Hyundai Electric’s second plant in Montgomery, Ala., Friday (local time). Third from left are Montgomery City Council President Cornelius Calhoun, HD Hyundai Electric CEO Kim Young-ki, Korean Consulate General in Atlanta Lee Jun-ho, HD Hyundai Electric Vice Chairman Cho Seok and Alabama Department of Commerce Secretary Ellen McNair. Courtesy of HD Hyundai Electric
HD Hyundai Electric is strengthening its presence in the North American market, expanding its manufacturing capacity in the United States.
The company said Sunday that it held a groundbreaking ceremony in Montgomery, Alabama, Friday (local time), for the second plant of HD Hyundai Power Transformers USA, its North American manufacturing subsidiary.
The new facility, scheduled to be completed in April next year, will span 29,000 square meters within the existing Montgomery site.
By investing $200 million, the company will expand its ultra-high-voltage transformer production capacity by 50 percent and establish new testing and production lines for 765-kilovolt transformers, a key component seeing rising demand as the U.S. pushes to add high-voltage backbone transmission networks to its power grid.
Once completed, the new plant is expected to generate roughly 200 billion won ($134.68 million) in additional annual revenue.
“The North American manufacturing subsidiary has played a pivotal role in strengthening our foothold in the U.S. market through localized manufacturing,” a company official said.
“With the successful completion of the second plant and additional expansion at our Ulsan facility scheduled for September, we expect to further reinforce our leadership in the North American ultra-high-voltage transformer market.”
Established in 2011, HD Hyundai Power Transformers USA is the first transformer manufacturing facility built in the U.S. by a Korean electrical equipment company and remains the largest production site for power transformers in the country.
The company has steadily expanded its investment into the site over the past decade, initially investing 62.6 billion won to establish the plant and adding 53.7 billion won to boost capacity in 2018. In 2023, it added a dedicated transformer storage facility with an 18.3 billion won investment.
The regional manufacturing base has helped shorten delivery lead times and improve customer responsiveness, reinforcing its credibility and competitiveness in the market.
As a result, its U.S. operation has been seeing steady growth with the subsidiary’s annual revenue climbing from about $100 million in 2017 to roughly $400 million last year. Its workforce also expanded from 100 in 2011 to about 460 in 2025. The company plans to hire about 200 additional workers once the second plant is completed.
