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Hyosung HICO Expands Operations in Memphis, Tennessee

Hyosung HICO Manufacturing Facility

News Summary

Hyosung HICO, Ltd. has announced a $51 million expansion of its manufacturing operations in Memphis, Tennessee, which will create 123 new jobs. This facility, established in 2019, will increase production capacity by 50%, strengthening its role as a top supplier of large power transformers in the U.S. market by 2027. The expansion is pivotal for the local economy and aligns with the growing demand for advanced electric grid infrastructure.

Tennessee – Hyosung HICO, Ltd. has announced a significant expansion of its operations at its U.S. manufacturing headquarters in Memphis, Tennessee. This expansion will involve an investment of $51 million and is expected to create 123 new jobs in Shelby County.

The company, known for its manufacturing of large power transformers which are essential components of the electric grid, aims to increase production capacity by 50%. The Memphis facility, which spans 360,000 square feet, is uniquely positioned on a strategically located 200-acre site adjacent to rail and water, making it a critical component of the company’s North American operations.

Hyosung HICO’s Memphis facility, established in 2019, serves as the company’s first production site in the United States. It has become a cornerstone in fulfilling the company’s goal to become the top supplier of large power transformers in the U.S. market by 2027. Before this recent announcement, the company had already created over 500 jobs in the Memphis area, highlighting its commitment to growth in the region.

Strategic Importance

The expansion of Hyosung HICO’s Memphis operations is strategically aligned with the company’s vision of increasing its competitiveness in the U.S. market. The CEO emphasized that achieving success in America is critical for the overall success of the company. The facility is currently the only operational site in the U.S. that has the capability of producing 765kV level transformers, marking its significance in handling higher voltage levels in the electric grid.

This new expansion will not only bolster the company’s manufacturing capabilities but also support the growing demand for power across various sectors such as data centers and manufacturing. Notably, the partnership with xAI, a nearby company that relies on power transformers for its operations, demonstrates the interconnected nature of local industries.

Local Economic Impact

The investment from Hyosung HICO is a testament to the strong foreign direct investment relationship between South Korea and Tennessee. Since 2019, South Korea has emerged as Tennessee’s top foreign direct investment partner. The expansion is expected to enhance Memphis’s reputation as a center for advanced manufacturing, as highlighted by local economic development leaders.

The Tennessee Department of Community and Economic Development Commissioner noted that Memphis has ideal access to important logistical routes, including air, rail, and water, which presents a unique opportunity for manufacturing and distribution activities. The Greater Memphis Chamber President pointed out that the expansion reflects the area’s ongoing growth and competitiveness in advanced manufacturing.

Meeting Growing Demand

Hyosung HICO’s operations play a vital role in managing the increasing demand for electric grid infrastructure across the country. Memphis Light, Gas and Water President highlighted the historical growth in the electric grid that has driven the need for enhanced manufacturing capabilities to ensure reliability and efficiency in power distribution.

The company’s commitment to meeting the needs of the modern electrical environment through innovations in transformer production aligns with ongoing trends in energy consumption and grid management. The expansion of the Memphis facility underscores the importance of investing in infrastructure that can keep pace with the demands of today’s economy.

In conclusion, the $51 million investment by Hyosung HICO in Memphis is a critical step toward strengthening its manufacturing operations, creating jobs, and contributing to the utility sector’s growth in response to increased energy demands. As the company continues to position itself as a leader in the market, the expansion will solidify its presence and capabilities within the United States.

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Author: HERE Memphis

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