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Hyosung Heavy Industries: A Leader in Global Power Solutions

Hyosung Heavy Industries is poised to achieve unprecedented sales this year, projecting figures of KRW 5 trillion (approximately USD 3.6 billion) while operating profits are expected to exceed KRW 500 billion (around USD 360 million) for the first time. This momentum is significantly attributed to the surge in power demand driven by the increasing adoption of artificial intelligence (AI). Industry experts acknowledge that the visionary leadership of Chairman Cho Hyun-joon plays a pivotal role in steering the company towards these remarkable outcomes.

Power Infrastructure: The Backbone of the AI Economy

Chairman Cho has highlighted the importance of power infrastructure as an essential foundation for the burgeoning AI economy. In his remarks, Cho stated, "AI is revolutionizing industries and everyday life, making dependable power infrastructure more crucial than ever." He emphasized that to stay ahead of global customer needs and rapidly evolving market trends, Hyosung Heavy Industries must cultivate unique technological advantages, positioning itself as a vital supplier in the AI-driven energy landscape.

Despite challenges faced by the global power sector and stiff competition from established European manufacturers, Hyosung remains committed to investing in next-generation grid solutions, including advanced AI-enabled smart manufacturing plants. Since taking on the role of internal director of Hyosung Heavy Industries in March this year, Chairman Cho has provided strategic oversight and leveraged international networks to extend the company's reach into new and burgeoning markets.

Major Supply Agreements Across North America and Europe

The strategic initiatives are yielding beneficial results. This year, Hyosung Heavy Industries has successfully signed significant contracts across North America and Europe. It has become the first South Korean company to secure a long-term supply contract for ultra-high-voltage transformers and reactors with top transmission system operators in Germany. In Scotland, Hyosung has won a KRW 85 billion deal to provide ultra-high-voltage transformers, and previously established a long-term agreement with French operators. Additionally, they have secured orders earlier this year, fortifying their stance in Europe—one of the world’s most advanced power markets—by participating in major projects such as the UK's National Grid phase-shifting transformer program and an ultra-high-voltage transformer initiative for Norway's state utility.

Strategic analysts also affirm that Hyosung's proactive approach to the U.S. power market has been timely and effective, as it entered a cyclical growth phase, establishing a local production presence early on. This year, they achieved the largest single order for ultra-high-voltage breakers in North America and continue to garner additional contracts for sophisticated large-capacity offerings, including 765kV ultra-high-voltage transformers and 800kV gas-insulated switchgear (GIS).

Innovation in High-Voltage Direct Current (HVDC) Technology

Hyosung Heavy Industries aims to pioneer the localization of high-voltage direct current (HVDC) transmission technology to assert its leadership in the next phase of the global power market. The drive for HVDC technology began in 2017 under Chairman Cho's guidance, with a bold KRW 100 billion (approximately USD 72 million) investment set over seven years despite financial challenges. The company marked a significant milestone last year by successfully localizing Korea's first 200MW-class HVDC system.

HVDC technology, which converts alternating current (AC) into direct current (DC) for efficient long-distance transmission and back into AC for distribution, has gained recognition for its enhanced efficiency in transporting substantial amounts of power across vast distances. As advanced power semiconductors (IGBTs) and digital control systems improve performance, HVDC’s importance in the energy sector continues to rise. Chairman Cho remarked, "HVDC is not just a transmission method; it forms the fundamental technology for the future energy infrastructure."

Hyosung Heavy Industries is committed to solidifying its position as a key player in the global HVDC market by advancing the development of 2GW-class HVDC systems and enhancing its capabilities in local and international transmission network projects.

In summary, with Hyosung Heavy Industries on a consistent growth trajectory fueled by strategic initiatives and innovation spearheaded by Chairman Cho, the company is well-positioned to thrive in the evolving landscape of global power solutions.