Wedoany.com Report-Nov. 19, Hyosung Heavy Industries announced Tuesday that it will invest $157 million in expanding its high-voltage transformer plant in Memphis, Tennessee, with plans to more than double its production capacity by 2028. The expansion will make the Memphis facility the largest transformer production plant in the U.S. The investment is driven by expectations of increased demand for transformers, particularly as AI-driven growth in data centers and the need to replace aging electrical infrastructure boost market needs.

Hyosung Heavy Industries' high-voltage transformer plant in Memphis, Tennessee, is pictured in this undated photo provided by the company.

Acquired by Hyosung in 2020, the Memphis plant is the only facility in the U.S. capable of designing and manufacturing 765-kilovolt ultra-high-voltage transformers. Hyosung has been the market leader for 765kV transformers in the U.S. since the early 2010s, supplying nearly half of all 765kV transformers installed on the U.S. power grid.

The U.S. transformer market is projected to grow at an annual rate of 7.7%, reaching $25.7 billion by 2034, up from $12.2 billion in 2024, according to Global Market Insights. As of October 2025, U.S. power utilities have committed to supplying 116 gigawatts of new power to data centers, about 15.5% of the country’s current peak electricity demand. Additionally, they plan to add another 309 gigawatts by 2040, as reported by Wood Mackenzie.

Hyosung's investment in Memphis is spearheaded by Hyosung Group Chairman Cho Hyun-joon. In a press release, Cho emphasized that the future of the power industry is not just about equipment, but also about the ability to manage power flows, storage, and system stability in an integrated manner. He added that the company aims to strengthen its global position as a total-solution provider by increasing its presence in North America.

The Memphis plant's expansion is part of Hyosung's broader strategy to meet the growing demand for advanced power equipment and systems. The company has posted strong financial results, with revenue of 1.6 trillion won ($1.09 billion) and operating profit of 219.8 billion won in the third quarter of 2025, its highest-ever quarterly performance. Hyosung’s global order backlog has reached 11 trillion won, marking a 52% increase compared to the previous year. This expansion is expected to further solidify Hyosung's leadership in the power industry, particularly in North America, where the demand for advanced transformer technology is on the rise.