Investment of 330 Billion KRW in New Factory Construction and R&D
Transformer Production Capacity to Expand by 20% Upon Completion
Significance in "Technological Localization"... Fostering Export Industry
Hyosung Heavy Industries is establishing a production base for high-voltage direct current (HVDC) transformers, a core technology for the future power grid. The company plans to invest a total of 330 billion KRW in the coming years for facility expansion and research and development (R&D) projects.
On July 30, Hyosung Heavy Industries announced that it held a groundbreaking ceremony for a new HVDC transformer factory at its Changwon plant in Gyeongnam. The new transformer factory will be built on a site of approximately 29,600 square meters within the Changwon plant, with completion targeted for July 2027. Including 254 billion KRW for the construction of the new plant, Hyosung Heavy Industries plans to invest a total of 330 billion KRW over the next two years in its HVDC business, which includes expanding production facilities for its core equipment, the "large-capacity voltage source converter system," and conducting R&D projects.
The new factory will be the largest dedicated "voltage source HVDC transformer" plant in Korea. Last year, Hyosung Heavy Industries succeeded in developing the country's first 200MW-class voltage source HVDC technology. Compared to alternating current transmission, HVDC minimizes power loss over long distances, and in particular, voltage source HVDC technology can be linked with renewable energy generation.
Until recently, HVDC technology was almost exclusively held by a small number of overseas power equipment companies. Korea had also relied on foreign technology in this field, but Hyosung Heavy Industries began development in 2017 and last year succeeded in localizing the technology with its own independent capabilities. The company plans to continue this technological localization, including the development of a 2GW-class large-capacity voltage source HVDC system.
The total transformer production capacity at the Changwon plant is expected to increase by about 20% starting in 2028, when the new factory becomes fully operational. Hyosung Heavy Industries believes it will be able to respond to the surging global demand in the power market, especially in the direct current power market, which has high future growth potential. Above all, by enhancing its competitiveness based on proprietary technology, the company aims to become a total solutions provider capable of everything from system design to the production of equipment such as converters and controllers.
Furthermore, Hyosung is expected to play a pivotal role in the construction of the "West Coast Energy Highway." The government plans to connect renewable energy generated in the Honam region to the metropolitan power grid through the West Coast Energy Highway. This is to respond to the exponential increase in power demand driven by the growth of advanced industries such as artificial intelligence (AI). HVDC technology, which enables bidirectional power control and is advantageous for power grid stabilization, is at the core of this project.
Hyosung Vice Chairman Lee Sangwoon stated, "Although voltage source HVDC technology has so far been dominated by overseas companies, technological localization is essential to secure competitiveness in future markets and foster this as an export industry. As Korea's leading energy solutions provider, Hyosung has the capabilities to lead the localization of HVDC technology and raise the global profile of 'K-Electric Power.'"
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