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South Korea’s Hyundai Heavy Industries (HHI) started breaking into the transformer market in North America on completion of its transformer factories in the United States in November this year Hyundai’s move is a part of its strategy to diversify its group portfolio centering on the shipping sector, by investing in electronic systems that produce transformers and circuit breakers.
The sales of electro electric systems, one of the seven HHI business sectors, tripled in five years from one trillion won ($856 million) in 2006 to three trillion won in 2011.
The factories are a historical legacy of HHI upon establishment because they are the first production facilities constructed on U.S. soil since its advance into the American transformer market in 1982. The factory took a total investment of 100 billion won and a year to complete and can produce up to 200 units of 500kV transformers (a total of 14,000 MVA).
HHI is projecting that the construction of the factories will cut transport time and costs and increase its share in the North American market, where domestic products are strongly preferred by consumers. HHI is also planning to exploit the factory as an export base to Latin America and Europe.
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