Hyosung Invests 330 Billion Won in Dedicated HVDC Transformer Factory.. Chairman Cho Hyun-joon: "Must Become World No.1"

[Financial News]   Hyosung is investing 330 billion won to establish a production base for voltage-type high-voltage direct current (HVDC) transformers, a key technology for future power grids. The existing HVDC transformer market was almost monopolized by GE, Siemens, Hitachi, etc., so Hyosung Heavy Industries' HVDC localization is expected to make them quite nervous.
Hyosung Heavy Industries held a groundbreaking ceremony for the new HVDC transformer factory at the Changwon plant in Gyeongnam on the 30th. This factory is planned to be built on a site of approximately 29,600㎡ within the Hyosung Heavy Industries Changwon plant and is expected to be completed in July 2027. Hyosung Heavy Industries plans to invest a total of 330 billion won over the next two years for the HVDC business, including about 254 billion won for the new factory construction, expansion of production facilities for the core equipment of HVDC, the 'large-capacity voltage-type converter system', and R&D projects.
■ "Leading HVDC Localization to Elevate the Status of 'K-Power'" 
Chairman Cho Hyun-joon of Hyosung has always emphasized, "All fields of heavy industry are important, but HVDC is particularly the most important and must become world number one. We have the potential to become a game-changer more than any other company."
Vice Chairman Lee Sang-woon of Hyosung, who attended the groundbreaking ceremony, also stated, "The voltage-type HVDC technology, which overseas companies have dominated, is essential for competitiveness in the future transmission network market and must be fostered as an export industry through technology localization. Hyosung Heavy Industries, as a leading energy solution provider in Korea, has the capability and experience to lead HVDC technology localization and elevate the status of 'K-Power'."
The newly constructed factory will be the largest dedicated voltage-type HVDC transformer factory in the country. Hyosung Heavy Industries succeeded in developing 200MW-class voltage-type HVDC technology for the first time in Korea last year. HVDC is a technology that allows power transmission over long distances with minimal power loss compared to HVAC (high-voltage alternating current transmission). Especially, Hyosung's voltage-type HVDC technology is gaining more attention recently as it can be linked with renewable energy generation.
Currently, HVDC technology is held by only a few overseas power equipment companies, which almost monopolize the global market. Korea has also relied on foreign technology so far, but Hyosung Heavy Industries started developing HVDC in 2017 and succeeded in localization with 'independent technology' last year by investing a total of 100 billion won.
This achievement is attributed to the leadership of Chairman Cho Hyun-joon of Hyosung, who focused on accumulating power equipment technology and know-how by integrating advanced technologies such as AI smart factories and investing in future power grid R&D, despite the global power market recession and technological gaps with advanced European companies, according to Hyosung Heavy Industries.
■ Expected to Play a Central Role in the West Coast Energy Highway
Hyosung Heavy Industries' HVDC is expected to play a central role in the 'West Coast Energy Highway' construction project promoted by the Lee Jae-myung government.
Voltage-type HVDC is essential for the 'West Coast Energy Highway' project. It allows real-time bidirectional power control and is advantageous for power system stabilization, making it possible to connect with renewable energy with irregular generation due to weather.
Using HVDC with domestic technology allows for quick maintenance and response in case of power grid failures, raising expectations that Hyosung Heavy Industries, the only company in Korea with voltage-type HVDC technology, will play an important role in the new government's 'West Coast Energy Highway' construction project.
Once the new HVDC factory begins full operation in 2028, the overall transformer production capacity of Hyosung Heavy Industries' Changwon plant is expected to increase by about 20% compared to the existing capacity, satisfying both the current exploding demand in the global AC power market and the high growth potential demand in the DC power market.
Additionally, Hyosung Heavy Industries is expected to become the only domestic provider of a total HVDC solution capable of system design and production of equipment (converters, controllers, transformers, etc.) with independent technology. 
padet80@fnnews.com Shin-young Park