Hyosung, will build a power grid on the ‘Mongol Meadow’ 7 times as large as Korean Peninsula

Hyosung will construct a power grid in Mongo where active growth higher than 10% occurs every year, for the first time as a Korean company.

On 16th, at Hotel Shangri-La in Ulan Bator, Mongol, Hyosung signed the MOU concerning the 142 billion Won (120 million dollar) scale construction of two 220KV substations, 315Km long transmission network and 975 transmission towers, with Vice Chairman Lee Sang-woon and Minister of Energy Dashzeveg ZORIGT from Mongol government attended.

Making a success in signing this MOU, Hyosung made a successful entry into the first stage of the power infrastructure construction program in Mongol. With this, Hyosung preoccupied the advantageous position for winning the power project of Mongol government to be intensively executed in the next 2~3 years, and is now able to attack in full scale the Mongolia power market that will reach 3,080MW until 2030.

Hyosung will first complete construction of the transmission line from Ondureukan to Choybalsan in the northeast area of Mongol and 2 substations as early as 2018 to contribute to development of power industry and stabilization of power supply.

Hyosung expects that this substation and transmission line construction project will enable stable power supply to the northeast area of Mongol where 70% of the total underground resources of Mongol is buried and be also able to contribute to vitalization of Mongolia economy through active development of mines.

Thanks to mineral resources export and foreign investment, Mongol is considered to be a high growth market with higher than 10% growth rate. Mongol secures rich energy resources such as coal, uranium, sun light and wind power, but the energy industry is overall in poor condition due to lack of power technology and infrastructure. Hence, SOC (social overhead capital) investment is highly required.

In particular, as Mongol has wide area 7 times as wide as Korean Peninsula, much power is lost from long distance transmission lines. Hence, power supply is unstable and the power deficit is supplied from neighboring countries including Russia.

To solve this problem, for stable and efficient power supply, Hyosung has a plan to use such technologies as STATCOM and ESS (energy storage system) developed and commercialized by Hyosung for the first time in Korea, to reduce power loss and solve the order imbalance problem in power.

Vice Chairman Lee Sang-woon who has been in charge of this MOU process said, “As a total supplier of power and solution in the global market, Hyosung has secured the capability of stable construction and operation in such countries with poor power environment as India or Middle East and its technology has received recognitions,” and “Taking this opportunity of MOU, Hyosung will try hard to establish itself as a main supplier in the Mongolia power market and, furthermore, to be able to jump to the position of an emerging power in the Central and Southeast Asian power markets above Mongol.”

On the other hand, Hyosung is strengthening its attack on the Asian power markets, obtaining a total of 100 billion Won scale power project in Bhutan and constructing a GIS (gas insulated switchgear) production plant in the Pune area of India with the scheduled completion in July, next year, for full scale attack on the Indian market.