HD Hyundai Electric expands global production capacity
The electrical equipment maker maintains a consolidated backlog of 12 subsidiaries.
The electrical equipment maker HD Hyundai Electric is expanding its manufacturing footprint to meet rising demand for power infrastructure,. The company is currently executing several investment projects to increase production capacity, including the expansion of its Ulsan transformer plant and the construction of a distribution campus in Cheongju. These efforts align with a broader trend of increased investment in power equipment driven by the growth of data centers, semiconductor plants, and the replacement of aging infrastructure.
Global expansion is a primary focus for the company, which has established sales entities in Europe and Texas. To further boost its international output, the company is constructing a second plant through HD Hyundai Power Transformers USA, Inc.. The company also operates production facilities in China through HD Hyundai Electric China Co., Ltd..
Product sales are concentrated in the electrical and electronics segment, which serves as the dominant business unit. Power equipment, including transformers and high-voltage circuit breakers, represents the largest portion of revenue at 67.8%. Rotating machinery and distribution equipment each account for 16.1% of the total.
To manage financial volatility, the company utilizes currency forward contracts to fix the won-denominated value of export payments. This risk management strategy is handled by a dedicated team of 7 people within the finance department.
Looking forward, the company intends to grow its digital service business and respond to the carbon neutrality market. It is also pursuing opportunities in renewable energy generation and electric vehicle charging stations, though the company notes these areas carry risks due to high policy dependence and technical volatility.