A new manufacturing facility in Alabama will increase transformer production capacity and support modernization of the U.S. power grid
Global power equipment manufacturer HD Hyundai Electric has announced a major expansion of its production operations in the United States, reinforcing its position in the North American extra high voltage power transformer market. The company recently held a groundbreaking ceremony for a second manufacturing facility at its North American production subsidiary, marking another step in its long-term strategy to invest in local manufacturing and strengthen supply capabilities in the region.
The ceremony took place at the company’s production base, HD Hyundai Power Transformers USA, located in Montgomery, Alabama, United States. Several government officials, corporate leaders, and industry representatives attended the event to mark the beginning of construction on the new facility. Among those present were Kim Youngki, chief executive officer of HD Hyundai Electric; Jun-ho Lee, Consul General of the Republic of Korea in Atlanta; Ellen McNair, Secretary of the Alabama Department of Commerce; and Cornelius “CC” Calhoun, President of the Montgomery City Council. The event also included representatives from partner companies and major customers.
The new manufacturing facility will cover approximately 312,000 square feet and will be built within the existing production site. Construction is expected to be completed by April of next year. HD Hyundai Electric plans to invest around $200 million into the project, which will significantly expand the company’s transformer production capabilities in North America. Once completed, the plant is expected to increase extra high voltage power transformer production capacity by about 50 percent.
One of the most significant aspects of the expansion is the addition of manufacturing and testing capabilities for 765-kilovolt-class transformers. These large-scale transformers are essential components of modern power transmission networks, particularly those designed to carry electricity over long distances at extremely high voltages. By producing this class of transformers locally, HD Hyundai Electric aims to support the expansion and modernization of the United States’ backbone power transmission system.
The project is also expected to deliver strong financial and economic benefits. After the new facility becomes operational, the company estimates that the additional production capacity will generate roughly 200 billion Korean won in extra annual revenue. At the same time, the expansion will contribute to job creation and local economic growth in the Montgomery region.
The Montgomery facility has played an important role in the company’s North American strategy since it was first established in 2011. At that time, the production base became the first transformer manufacturing subsidiary in the United States created by a Korean power equipment company. Since then, it has grown into the largest power transformer production facility in the country.
HD Hyundai Electric initially invested about $55 million to establish the subsidiary. Over the years, the company has continued to strengthen its commitment to the local market through additional investments. In 2018, another $44 million was invested to expand the plant’s production space, and in 2023 the company added a dedicated transformer storage facility with an investment of $19 million. These investments have helped the company increase manufacturing efficiency and respond more quickly to customer demands.
Local production has also played a key role in improving supply chain performance. By manufacturing transformers directly in the United States, HD Hyundai Electric has significantly reduced delivery lead times for customers in North America. This localized production strategy has improved responsiveness to customer needs and strengthened trust with utility companies and other partners that rely on the company’s equipment for critical infrastructure projects.
The results of this strategy can be seen in the subsidiary’s strong operational growth. The facility’s revenue has increased significantly over the past several years, rising from approximately $100 million in 2017 to around $400 million in 2025. This steady growth reflects increasing demand for power infrastructure equipment as countries invest in grid modernization and energy reliability.
The company’s workforce in Montgomery has also expanded alongside its production capacity. When the facility was first established in 2011, it employed about 100 workers. By 2017, that number had grown to more than 300 employees. As of 2025, the workforce had reached approximately 460 employees. Following the completion of the second plant, HD Hyundai Electric plans to hire an additional 200 workers, further contributing to local employment opportunities.
Demand for extra high voltage transformers continues to grow as electricity consumption increases and power grids require modernization to accommodate renewable energy sources and long-distance transmission systems. High-capacity transformers are essential for maintaining stable power supply networks, particularly as countries upgrade aging infrastructure and build new transmission lines.
An official from HD Hyundai Electric emphasized that the expansion represents a key milestone in the company’s strategy for strengthening its presence in the North American energy infrastructure market. The official noted that the Montgomery production base has already played a crucial role in supporting customers through localized manufacturing and faster delivery times.
Looking ahead, the company plans to complete the second plant and create operational synergies with another expansion project at its production facility in Ulsan, South Korea, which is scheduled to be completed later this year. Together, these facilities are expected to strengthen the company’s global manufacturing network and reinforce its leadership position in the extra high voltage power transformer sector.
Through continued investment in advanced manufacturing and infrastructure solutions, HD Hyundai Electric aims to support the evolving energy needs of utilities and power companies across North America. The new facility in Alabama represents not only an expansion of production capacity but also a long-term commitment to supporting reliable energy infrastructure and economic growth in the region.
