Hyosung Group Chairman Cho Hyun-joon Places New Bet on US Power Market with Ultra-High-Voltage Circuit Breakers
Chairman Cho Hyun-joon is expanding Hyosung’s presence in the US power market by establishing an ultra-high-voltage circuit breaker manufacturing base in the US.
Hyosung Heavy Industries Co., Ltd. announced on June 14 that its subsidiary, Hyosung HICO, Inc. has signed an agreement with a subsidiary of leading North American energy infrastructure solutions provider Quanta Services, Inc. to establish a GCB (Gas Circuit Breaker) joint venture called “HYOSUNG HICO BREAKER, LLC.”
The joint venture to be established in July will commence production of ultra-high-voltage circuit breakers ranging from 72.5kV to 800kV in October at Quanta’s Canonsburg plant in Pennsylvania.
□ First Korean Power Equipment Manufacturer to Establish an Ultra-High-Voltage Circuit Breaker Production Base in the US
The establishment of the joint venture is a strategic move to meet the growing demand for power equipment driven by the expansion of data centers and artificial intelligence (AI), as well as the modernization of aging power grids in the US. Through the joint venture, the two companies’ strategy is to secure a competitive edge in the supply chain in the US market by meeting local customers’ demand for on-time delivery and high-quality products.
As the parent company of the joint venture partner, Quanta Services is the largest EPC (engineering, procurement, and construction) company in the US power and energy infrastructure market. It has an extensive infrastructure solution business foundation and a strong customer network across the US encompassing utilities, power generation, energy storage systems (ESS), large-scale power-intensive facilities such as data centers, as well as the telecommunications and energy markets. Quanta Services is also the largest employer of skilled labor in North America.
Through this collaboration, Hyosung Heavy Industries plans to maximize its competitiveness in the US power market across its portfolio of world-class products and solutions by combining its globally recognized power equipment technologies with Quanta’s industry-leading infrastructure solutions capabilities.
Meanwhile, Hyosung Heavy Industries becomes the first Korean power equipment manufacturer capable of producing both transformers and circuit breakers in the US, the world’s largest power market.
□Chairman Cho Leads the Establishment of Joint Venture Through Direct Talks with Quanta Executives
The recent establishment of the joint venture came about after Chairman Cho brought about the final agreement by meeting Quanta Services’ CEO and senior executives in the US in March.
As early as last year, Chairman Cho recognized the need for a partnership with leading US infrastructure solutions provider Quanta Services to expand the US power market. He has been pushing ahead with the cooperation in not only ultra-high-voltage circuit breakers but also advanced power solutions, including direct current solutions.
“The two companies have already forged a strong partnership through cooperation ranging from the supply of circuit breakers and transformers to power transmission and renewable energy integration projects. With the explosive growth of the AI industry driving the need to upgrade power infrastructure, we aim to cement our position as a ‘total solution provider’ in the US power market by leveraging synergies between our US localization capabilities including the Memphis plant and the new joint venture,” Chairman Cho said.
Hyosung and Quanta Services are expected to expand their cooperation further to broader areas—including direct current solutions and data centers—following the establishment of their joint venture, which specializes in ultra-high-voltage circuit breakers.
Meanwhile, the Memphis ultra-high-voltage transformer plant has established itself as Hyosung Heavy Industries’ strategic foothold in the US power market. This facility has been developed by investing a total of USD 300 million (approx. KRW 440 billion) from the initial acquisition of the plant through the expansion that is currently underway. Once the current expansion is completed, the company will have one of the largest production capacities in the US.
□ Technology Developed through Continuous R&D for More Than 50 Years…Supplying Products to More Than 40 Countries Worldwide
Hyosung Heavy Industries has been recognized for its unrivaled technological expertise in ultra-high-voltage circuit breakers in Korea and worldwide thanks to continuous R&D for more than 50 years. In particular, it is the first Korean power equipment manufacturer to record cumulative circuit breaker production value of more than KRW 10 trillion.
Hyosung Heavy Industries has established itself as a leading global circuit breaker brand, supplying products to more than 40 countries around the world. The company entered the US—the world’s largest power market—in 2011, and it has rapidly expanded its market share by developing locally tailored circuit breakers based on customer feedback. In June last year, the company signed a contract worth KRW 260 billion with a leading US power company to supply ultra-high-voltage gas-insulated switchgear (GIS).
Earlier this year, Hyosung Heavy Industries signed a contract worth KRW 787 billion with a leading US transmission network operator to supply power equipment—the largest-ever deal secured by a Korean power equipment company—continuing to achieve strong results in the US power market. According to global market survey firm Global Market Insights (GMI), the North American circuit breaker market is projected to grow at a CAGR of 6.7% from USD 4.8 billion (approx. KRW 6.4 trillion) in 2024 to USD 9.6 billion (approx. KRW 12.8 trillion) in 2034.
