Hyosung Heavy Industries recently announced that it achieved 3.5101 trillion won (US$2.6752 billion) in sales and 143.2 billion won (US$109.1 million) in operating profit in 2022 thanks to a surge in global demand for power generation equipment. This represented an increase of 23.1 billion won (US$17.6 million) in operating profit compared to 2021. The company expects continued growth due to an increase in new power generation sources and growing demand for transmission and distribution in the global power market.
Hyosung Heavy Industries is penetrating the U.S. market after completing the expansion of its high-voltage transformer production base in the city of Memphis in the U.S. state of Tennessee which it acquired in 2020. The U.S. market has high demand for power equipment replacements. Currently, demand for transmission and distribution equipment in the United States is on the rise but supply is limited, leading to price hikes and expanded orders. Drop Fuse
Hyosung Heavy Industries’ flagship products are 100 MVA or higher transformers, which are referred to as Large Power Transformers (LPTs) by the U.S. Department of Energy. Ninety percent of U.S. transmission and distribution power is transmitted through LPTs. Currently, 70 percent of the installed LPTs in the United States are more than 25 years old. Since a typical LPT lifespan is 30 to 40 years, there will be a steady need for replacement, experts say.
Ceramic Insulators In addition, the United States has made decarbonization (net zero) a top national priority, with plans to attain net-zero electricity generation by 2035. This will trigger a rise in orders for large-scale solar and wind power generation and transmission and distribution facilities and fuel need for products such as static synchronous compensators (STATCOMs), energy storage systems (ESSs) and gas insulated switchgear (GIS), which hold the key to a successful energy transition.