HD Hyundai Electric CEO Cho Seok (center left) and other company and state officials celebrate the expansion of the company's production plant in Alabama on Friday. (HD Hyundai Electric)

HD Hyundai Electric, an energy solution provider under Korean shipbuilding giant HD Hyundai, said Sunday that it has expanded the storage capacity of its manufacturing plant in Alabama to meet growing orders and improve operational efficiency.

The expansion adds 12,690 square meters to the existing storage facility, which can house up to 60 power transformers. With the expansion, the plant will elevate production efficiency while reducing external storage and transportation costs.

"The new specialized transformer storage facility in the US not only enhances our product storage environment and quality standards but also maximizes productivity,” said Cho Seok, CEO of HD Hyundai Electric.

Beyond the Alabama expansion, HD Hyundai Electric is also upgrading its transformer factory in Ulsan, South Korea. The company plans to reconfigure the factory layout to improve product efficiency by the end of this month. Additionally, an idle site within the Ulsan complex will be transformed into a new iron core factory by October.

Following the expansions of the two plants, HD Hyundai Electric anticipates an annual revenue increase of approximately 220 billion won ($159 million).

The global power transformer market is soaring alongside the rising electricity demand. According to the International Energy Agency, global electricity demand is projected to surge by 24 percent by 2030 compared to 2021 levels, with an annual increase of 3.4 percent expected from this year to 2026.

This growth is particularly pronounced in the US, fueled by investments in renewable energy plants, upgrades to old power grids and the expansion of data centers which have increased the demand for power equipment.