HD Hyundai Electric Expands U.S. Production to Strengthen Leadership in North American Power Transformer Market

HD Hyundai Electric has announced the expansion of its North American production operations with the construction of a second manufacturing plant in the United States, reinforcing the company’s position in the region’s extra-high-voltage power transformer market.

The groundbreaking ceremony for the new facility took place on March 6 at the site of the company’s U.S. production subsidiary, HD Hyundai Power Transformers USA, located in Montgomery. The event was attended by senior executives and government officials, including CEO Kim Youngki, Korean Consul General Lee Joon-ho, Alabama Secretary of Commerce Ellen McNair, and Montgomery City Council President Cornelius “CC” Calhoun, alongside representatives from key customers and partner companies.

The new plant will cover approximately 312,000 square feet and will be constructed within the existing Montgomery production complex. Completion is scheduled for April 2027, with a total investment of roughly $200 million.

According to the company, the expansion will increase production capacity for extra-high-voltage power transformers by 50% and introduce new manufacturing and testing capabilities for 765-kilovolt-class transformers, a critical component for modernizing the backbone of the United States’ power transmission network.

Once operational, the new facility is expected to generate approximately 200 billion Korean won (about $150 million) in additional annual revenue.

HD Hyundai Electric first established its U.S. manufacturing presence in 2011, when it launched HD Hyundai Power Transformers USA—the first transformer manufacturing subsidiary built in the United States by a Korean power equipment company. Since then, the facility has grown into one of the largest power transformer production operations in the country.

The company has steadily expanded its investment in the U.S. operation over the past decade. After an initial $55 million investment in 2011, HD Hyundai Electric added $44 million in 2018 to expand manufacturing space and another $19 million in 2023 to build a dedicated transformer storage facility.

This localized production base has allowed the company to significantly shorten supply lead times and improve responsiveness to customer demand, strengthening its competitiveness in the North American market.

The expansion has been accompanied by consistent operational growth. Annual revenue from the U.S. subsidiary increased from approximately $100 million in 2017 to around $400 million in 2025. Workforce numbers have also grown substantially—from about 100 employees in 2011 to more than 460 employees today. Following completion of the new plant, the company plans to hire an additional 200 workers.

Company officials say the new facility will also complement expansion efforts at the company’s main production base in Ulsan, South Korea, which is scheduled for completion later this year.

“Our North American production subsidiary has played a key role in strengthening our presence in the U.S. market through local manufacturing,” a company spokesperson said. “By completing this second plant and combining it with our Ulsan expansion, we will further reinforce our leadership in the North American extra-high-voltage transformer market.”

The expansion comes as energy companies and utilities across North America accelerate investments in grid modernization and transmission infrastructure to support growing electricity demand and the integration of renewable energy sources.