CHUNGCHEONGBUK-DO < invest Korea

According to Pulse by Maeil Business News Korea,

South Korea’s HD Hyundai Electric Co. Ltd. is set to build a new distribution equipment factory in Cheongju, Chungbuk Province to bolster its key business lines.

The distribution equipment, essential for transmitting power from generating stations, is a core product line for HD Hyundai Electric alongside transmission equipment.

According to sources on Wednesday, HD Hyundai Electric recently acquired land within an industrial complex in Oksan, Cheongju for several hundred billion won for the new production facility. The company currently produces its distribution equipment from a leased facility in Anseong, Gyeonggi Province, and the forthcoming Cheongju factory, designed as a smart facility, will help to enhance production efficiency significantly while strengthening the competitive pricing of its distribution equipment.

With the Cheongju facility’s completion, the company will be equipped with the latest facilities to produce power equipment products, echoing its previous investment of 80 billion won ($62 million) in 2020 to build a smart factory for transmission equipment in Ulsan. Transmission equipment, such as high-voltage transformers, are used to transmit power from generation sites to demand points.

HD Hyundai Electric has seen substantial growth in its orders for high-voltage transformers from 1.52 trillion won in 2022 to 1.79 trillion won in the first three quarters of 2023. This is an increase of 232 percent and 290 percent respectively, compared to 2018’s 457.8 billion won figure. The surge is attributable to increased construction of power plants around the world, including renewable energy facilities.

HD Hyundai Electric’s order backlog for distribution business stood at 575.7 billion won as of the third quarter of 2023, continuing its upward trajectory from 319 billion won in 2021 and 409.7 billion won in 2022.


By Kim Hee-su and Minu Kim

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (November 30, 2023)