HD Hyundai Electric, Korea’s leading power grid equipment maker, announced Monday that it won a $199 million contract to supply ultra-high voltage power equipment to a Texas grid operator, marking the company’s largest single deal to date.
Under the contract, the company will deliver 24 units of 765-kilovolt transformers and reactors by 2029, all manufactured at its Ulsan plant.
The 765 kV system, the highest voltage used in the US, enables long-distance transmission with up to five times the capacity of the standard 345 kV grid, while improving efficiency.
The contract was signed despite the US decision in August to apply a 50 percent tariff on imports of steel, aluminum and related products, including high-voltage transformers.
Market observers note that the impact on Korean suppliers will be limited, as producers of ultra-high voltage equipment hold stronger bargaining power due to their technological rarity.
“The tariff will be adjusted based on the steel and aluminum content of each product, and suppliers can also pass part of the burden onto customers through negotiations,” said Sung Jong-hwa, analyst at LS Securities.
US electricity demand is expected to grow by 25 percent over the next decade, fueled largely by the expansion of artificial intelligence facilities. However, only about 10 companies worldwide can produce 765 kV transformers.
Among these manufacturers, HD Hyundai Electric has demonstrated its technological capability, securing more than 160 contracts for 765 kV transformers worldwide since 1999. To further strengthen its US presence, the company is building new production capacity for 765 kV equipment at its Alabama site, with operations scheduled to begin in 2027.
“A 765 kV transformer requires advanced technology that only a handful of companies can provide,” said an HD Hyundai Electric official. “This deal will cement our position in the North American power grid market and pave the way for further contracts.”
forestjs@heraldcorp.com
