HD Hyundai Electric announced on January 20 its plans to invest 185 billion won to construct a second manufacturing facility in Alabama. (Image courtesy of HD Hyundai Electric)
SEOUL, Jan. 21 (Korea Bizwire) — Korean manufacturers of power equipment and electrical cables are strengthening their foothold in the United States as demand surges for grid infrastructure upgrades, driven by artificial intelligence and data center expansion.
HD Hyundai Electric announced on January 20 its plans to invest 185 billion won to construct a second manufacturing facility in Alabama. The new plant will produce ultra-high voltage transformers rated at 765kV, the highest voltage specification currently used in the U.S. The company expects to generate up to 100 billion won in additional annual revenue by 2028.
“This increase in production capacity will allow us to respond nimbly to increasing transformer demand while preparing for potential changes in U.S. trade policies under the second Trump administration,” a HD Hyundai Electric representative said.
The U.S. market presents significant opportunities, with over 50% of underground power networks exceeding their 40-year replacement cycle. Demand for grid infrastructure has surged due to AI implementation, data center growth, and the construction of semiconductor and electric vehicle plants.
“Power demand has risen sharply in recent years and this trend is expected to continue for decades,” said Eom Su-jin, an analyst at Hanwha Investment & Securities. “Demand for power and communication cables, the ‘bloodlines of industry,’ is skyrocketing.”
Korean companies with advanced technology are accelerating their U.S. growth through production facility investments and acquisitions. Gaon Cable, an LS Cable subsidiary, is set to acquire full ownership of LSCUS, a power cable manufacturing facility in Tarboro, North Carolina, by month’s end.
LS Cable is investing approximately 1 trillion won to build America’s largest submarine cable factory in Virginia. Construction will begin in April, with completion scheduled for 2027 and projected cumulative sales of 1 trillion won by 2030.
Taihan Cable secured its largest North American contract last year, worth 720 billion won. The company is actively exploring options to strengthen competitiveness, including local production facilities.
Hyosung Heavy Industries is expanding its Memphis, Tennessee ultra-high voltage transformer plant, adding testing lines and doubling production capacity by the end of next year.
Industry experts project substantial power demand growth over the next 15 years. The market outlook is further bolstered by President-elect Trump’s stated commitment to strengthening domestic manufacturing and AI infrastructure.
Recovery efforts from recent Los Angeles wildfires may also increase demand for Korean power equipment manufacturers. “We expect the second Trump administration to maintain policies favorable to power infrastructure development, including attracting foreign investment for new data centers,” said Cho Yunju, an analyst at Mirae Asset Securities.
Kevin Lee (kevinlee@koreabizwire.com)
