Memphis, Tennessee, December 30, 2025
Hyosung HICO, a South Korean manufacturer of power transformers, is expanding its Memphis operations with a $157 million investment, leading to the creation of 240 new jobs. The expansion increases manufacturing capacity by 50% and will focus on producing essential 765kV transformers, crucial for a stable electric grid. This development continues to enhance Memphis’s reputation as a key player in international manufacturing.
Memphis, Tennessee – South Korean Company Hyosung HICO Expands Operations, Creating 240 Jobs
Hyosung HICO, Ltd., a South Korean manufacturer of large power transformers, is investing an additional $157 million to expand its U.S. manufacturing headquarters in Memphis, Tennessee. This expansion is expected to create 240 new jobs, increasing the facility’s manufacturing capacity by 50% and making it one of the largest domestic power transformer manufacturing operations in the U.S. The new plant will be dedicated to producing 765kV transformers, a critical component for a secure and reliable electric grid. This investment brings Hyosung HICO’s total investment in Memphis to over $300 million since 2019.
Details of the Expansion
The expansion includes the construction of a new facility at Hyosung HICO’s existing U.S. manufacturing headquarters in Memphis. The additional investment will enhance the company’s ability to meet the growing demand for large power transformers in the North American market. The new plant will focus on producing 765kV transformers, which are essential for maintaining a stable and reliable electric grid.
Background on Hyosung HICO
Hyosung HICO, Ltd. is a subsidiary of South Korea-based Hyosung Heavy Industries, a leading producer of large power transformers and other heavy electrical equipment. Since establishing its U.S. production facility in Memphis in 2019, Hyosung HICO has become a key player in domestic grid modernization efforts. The company’s decision to expand its operations in Memphis underscores the strategic importance of the location and the skilled workforce available in the area.
Impact on the Local Economy
The expansion is expected to have a significant positive impact on the local economy. The creation of 240 new jobs will provide employment opportunities for residents and contribute to the economic growth of Memphis and the surrounding region. Additionally, the increased manufacturing capacity will strengthen the local supply chain and support the broader energy infrastructure in the United States.
Recent Developments in Tennessee’s Manufacturing Sector
Tennessee has recently attracted several South Korean companies to establish or expand manufacturing operations in the state. For example, in December 2024, the ALUKO Group announced plans to invest $36.3 million in Jackson, Tennessee, to manufacture aluminum battery casings for Ford’s BlueOval City, creating 55 new jobs. Similarly, in August 2023, Hanon Systems, a South Korean-based company, announced plans to invest $170 million in Loudon, Tennessee, to establish a manufacturing complex, creating 600 jobs. These developments highlight Tennessee’s growing appeal as a destination for international manufacturing investments.
Conclusion
The expansion of Hyosung HICO’s operations in Memphis is a significant development for both the company and the local community. The investment not only increases the company’s manufacturing capacity but also creates valuable employment opportunities, contributing to the economic vitality of Tennessee. This expansion reflects the state’s ongoing efforts to attract and support international manufacturing investments, reinforcing its position as a key player in the global manufacturing sector.
Frequently Asked Questions (FAQ)
What is Hyosung HICO?
Hyosung HICO, Ltd. is a South Korean manufacturer specializing in large power transformers and other heavy electrical equipment. It is a subsidiary of Hyosung Heavy Industries.
Where is Hyosung HICO expanding its operations?
Hyosung HICO is expanding its U.S. manufacturing headquarters in Memphis, Tennessee.
How many jobs will the expansion create?
The expansion is expected to create 240 new jobs.
What is the total investment in this expansion?
The total investment in this expansion is $157 million.
What products will the new facility produce?
The new facility will produce 765kV transformers, which are critical components for a secure and reliable electric grid.
How does this expansion impact the local economy?
The expansion is expected to positively impact the local economy by creating employment opportunities and strengthening the local supply chain, contributing to the economic growth of Memphis and the surrounding region.
Key Features of the Expansion
| Feature | Details |
|---|---|
| Investment Amount | $157 million |
| New Jobs Created | 240 |
| Manufacturing Capacity Increase | 50% |
| Product Focus | 765kV transformers |
| Total Investment in Memphis Since 2019 | Over $300 million |
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Hyosung HICO Expands Operations in Memphis, Tennessee
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
