Hyundai Power Transformers USA, a subsidiary company of Hyundai Heavy Industries has completed plant construction and began production the first of November 2011.
The plant located at 215 Folmar Parkway Montgomery, Alabama consists of 1,393,920 square feet of space, and will employ approximately 500 people. The facility which has an initial investment of 108 million dollars was completed in record time. The average life span of a transformer is 30 years, and 60 percent of the market is 20 years old or older and will soon be in need of repair or replacement. Utility companies have already voiced a need for suppliers here in America, and Hyundai Power Transformers USA plans on becoming that supplier.
HPT's parent company, Hyundai Heavy Industries ("HHI") which is the world's largest shipbuilder and a worldwide leader in the power industries expanded into the State of Alabama in November 2011 by investing $108 million to open HPT's power transformer plant in interstate park in Montgomery under the project agreement by and among The State of Alabama, The City of Montgomery, Montgomery County, The Industrial Development Board of the City of Montgomery, and HPT.
Hyundai Electric (HE) has announced that it has purchased 100% ownership of Hyundai Power Transformers USA, Inc. (HPT) from Hyundai Heavy Industries (HHI) for a total of 30.9 Million USD.
HE is planning to invest 33 Million USD in HPT's facility, modifying it to a smart factory. Through automation of production process and development of real-time process management system, HPT's production capability will increase by more than 60%. Additionally, HPT is seeking to develop a newly constructed training facility that will foster advanced labor force, contributing to HE's target of generating 200 Million USD in revenue by 2021. HPT generated 100 Million USD in revenue in 2017.
HPT is Korea's first production plant established in U.S within the electric power industry, constructed by HHI back in 2010. It currently employs 300 members and is capable of producing 14,000MVA annually, or 80 units of Power Transformers.Through the acquisition, HE plans to fully utilize HPT in maneuvering U.S. imposed anti-dumping tariff and its protectionist policies.
Officials in HE disclosed that they will add additional sales labor force in HPT and reinforce its sales infrastructure, in preparation for future business portfolio diversification- expanding its market exposure to high voltage circuit breakers, rotary machines, power distributors, and energy solutions.