U.S. Power Transformer Manufacturing Gets Major Boost as Hyosung Scales Up Memphis Plants

TokenomicsTinfoilHat · 2025-12-26T02:18:28+00:00

Hyosung Heavy Industries is investing $157 million to expand its Memphis, Tennessee power transformer manufacturing facility, increasing production capacity by over 50% by 2028. This facility is the only U.S. site that designs and produces 765kV transformers, crucial for grid efficiency.

TokenomicsTinfoilHat

2025-12-26 02:18:28

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Hyosung Heavy Industries, a leading Korean manufacturer of heavy electrical equipment, is making a significant commitment to American infrastructure with a $157 million capital allocation toward expanding its Power transformer manufacturing facility in Memphis, Tennessee. This investment marks the third phase of the company’s builout at the location and is projected to deliver a production capacity increase exceeding 50 percent by 2028.

The Memphis plants represent a unique asset in the American industrial landscape—it’s the only U.S. facility currently equipped to both design and manufacture 765kV Power transformers. These advanced units deliver substantial advantages in grid efficiency, with significantly lower transmission losses compared to conventional 345kV or 500kV transformer models. As electrical demand intensifies and grid modernization accelerates, this capability becomes increasingly valuable.

Since initially acquiring the Memphis facility, Hyosung has committed a cumulative $300 million to the location, encompassing the original acquisition plus successive expansion phases. Once the latest upgrades are complete, the Memphis plants will operate as the highest-capacity Power transformer production site anywhere in the United States, according to the company’s official statement.

The investment underscores growing demand for next-generation transformer technology and reflects Hyosung’s confidence in the North American market. The move also highlights the critical role of domestic manufacturing capacity for specialized electrical equipment that underpins grid reliability and efficiency across the nation.

On Friday trading, Hyosung Heavy Industries shares (298040.KS) closed at 1,962,000 KRW on the Korea Stock Exchange, reflecting a 0.81% decline for the session.

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