Securing an ESS design-construction contract worth approximately KRW 140 billion

Sales in North and Central America last year exceeded KRW 1 trillion for the first time

Hyosung Heavy Industries has secured a battery energy storage system (BESS) contract worth KRW 140 billion in Australia, thereby broadening its business prospects. The company established a presence in the United States and Europe, making over KRW 1 trillion in sales in the North and Central American markets. Following this achievement, it plans to actively seek out new markets, including Australia.

Hyosung Heavy Industries announced that it recently signed a KRW 142.5 billion contract with Tangkam BESS Pty. Ltd. for the design, procurement, and construction of energy storage systems (ESS) in Australia. The project involves building a 100MW/200MWh battery-based ESS in the Tangkam region of Queensland, Australia, with commercial operation targeted at the end of 2027. The company will handle the installation and test-drive, and the maintenance contract will be signed separately.
This marks the first time Hyosung Heavy Industries has supplied an ESS to Australia. The Australian government is implementing a policy to expand ESS aimed at stabilizing the power grid, investing a budget of AUD 20 billion (approximately KRW 20 trillion) to increase its renewable energy generation ratio to 82% by 2030.
Hyosung Heavy Industries believes that this new supply project will be a key solution for the Australian power grid, and plans to show its integrated system-control technology through its own battery management system software.
The company also plans to expand full-scale into global markets. It proved its competitiveness among leading global competitors last year, when its heavy-industry division achieved sales of KRW 1.1123 trillion in the North American market for the first time since its founding. Last month, the company secured a KRW 787 billion contract in the United States for the supply of power equipment, which is the largest in the company’s history, and a KRW 29 billion long-term supply contract for ultra-high voltage transformers in Finland.

 
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Hyosung Heavy Industries Builds Additional Ultra-High Voltage Transformer Plants in the USA

Invests significantly in a plant in Tennessee, USA, five years after the acquisition from Mitsubishi of Japan

Hyosung Heavy Industries carried out an additional investment of approximately KRW 200 billion in its ultra-high voltage transformer plant in Tennessee, USA. With the investment, it has secured the largest production base in the region.
Hyosung Heavy Industries recently announced that it will invest an additional US$ 157 million (approximately KRW 230 billion) in its ultra-high voltage transformer plant in Memphis, Tennessee, expanding production capacity by more than 50% by 2028. Hyosung Heavy Industries acquired the plant from Mitsubishi of Japan in 2020 for US$ 46.5 million (approximately KRW 68 billion).
The Memphis plant is the only facility in the United States that is capable of designing and manufacturing 765kV ultra-high voltage transformers. These transformers are key components that convert voltage in the first stage of power transmission — determining the stability, efficiency, and operational reliability of the power grid.

Since the early 2010s, Hyosung Heavy Industries has maintained a dominant market share in the U.S. 765kV ultra-high voltage transformer market, supplying approximately half of the transformers installed in the local transmission grid. To achieve this, Hyosung Heavy Industries has invested a total of US$ 300 million (approximately KRW 440 billion) through three expansions since acquiring the Memphis plant.
Such investment by Hyosung Heavy Industries is a strategic response to the changing environment of the U.S. market. Recently in the United States, demand for power-grid expansion is skyrocketing, driven by the replacement of decrepit power facilities and the growth of power-intensive industries such as AI data centers. The local transformer market is growing at an average annual rate of approximately 7.7%, from approximately US$ 12.2 billion (approximately KRW 17.8 trillion) in 2024 to approximately US$ 25.7 billion (approximately KRW 37.5 trillion) in 2034.

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