Three Subsidiaries Including Atlanta and Alabama
Rising Power Demand from Big Tech Companies in Texas
'Localization' Strategy Amid Uncertainty Over U.S. Tariffs
HD Hyundai Electric has established a new sales subsidiary in Texas, USA. This move is seen as an effort to expand its business in the United States, driven by increased power demand from big tech companies amid the artificial intelligence (AI) boom, as well as the ongoing impact of U.S. tariff policies.
An HD Hyundai Electric representative stated on May 9, "We recently registered a subsidiary in Dallas, Texas." However, the subsidiary is still in its early stages, and the company is currently reviewing specific details such as staffing and organizational structure.
The representative explained, "We previously had subsidiaries in Atlanta and Alabama, both located in the eastern part of the United States, but we are now considering establishing a subsidiary in the western region. This is part of our efforts to expand our business in the U.S."
HD Hyundai Electric's ultra-high voltage transformer production plant in Alabama, USA, provided by HD Hyundai Electric
With the establishment of the new subsidiary, HD Hyundai Electric will now have a total of three overseas subsidiaries in the United States. The Atlanta subsidiary is responsible for sales, while the Alabama plant produces about 40% of the products sold in the U.S. market. HD Hyundai Electric is also investing 185 billion KRW to build a second plant at its Alabama subsidiary, which is scheduled for completion next year and is expected to begin operations in 2027.
Through the establishment of the Texas subsidiary, HD Hyundai Electric is expected to further strengthen its entry into the power infrastructure market in the southern United States. Texas has recently seen a surge in power demand as global big tech companies such as Apple, Google, Tesla, and Oracle have established large-scale campuses and data centers in the region.
In addition, as the impact of U.S. tariff policies continues, the company expects its localization strategy to help minimize these effects. Competitor LS Electric also purchased a 46,000-square-meter site in Bastrop, Texas, in July last year and established the 'LS Electric Bastrop Campus,' which is responsible for production, research, and design.
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