HD Hyundai Electric said Tuesday that it has decided to invest 198 billion won in phase 2 of its Cheongju distribution campus.
The company plans to build a production cluster at the Cheongju campus over 26 months and expand its production capacity. This move aims to consolidate production hubs by relocating the production of switchgear and distribution transformers, previously manufactured at the Ulsan Seonam plant, to the Cheongju distribution campus.
HD Hyundai Electric operates three production facilities in South Korea: the Ulsan plant, the Ulsan Seonam plant, and the Cheongju distribution campus. The Ulsan plant primarily produces power equipment and rotating machinery, the Ulsan Seonam plant manufactures switchgear and distribution transformers, and the Cheongju distribution campus mainly produces medium- and low-voltage circuit breakers.
HD Hyundai Electric expects this investment to generate an annual revenue increase of 250 billion won.
A representative from HD Hyundai Electric explained that the investment is intended to respond to mega-project orders driven by increased demand for AI data centers and the trend of package orders for distribution equipment.
Separately, HD Hyundai Electric disclosed on the same day that its consolidated revenue for the third quarter of this year reached 1 trillion 179.9 billion won, with an operating profit of 284.5 billion won. Revenue increased by 18.5% and operating profit rose by 15.1%, respectively, compared to the same period last year.
In particular, revenue in the distribution equipment and new business segments grew by 85.8% year-on-year, highlighting a strong growth trend.
Demand for distribution transformers expanded centered on the semiconductor industry, and sales of distribution equipment increased in the North American market. Additionally, revenue from the battery energy storage system (BESS) project in Anjado, Sinan, Gwangju, South Jeolla Province, which was secured last December, began to be fully reflected.
The rotating machinery segment also saw revenue increase by 16.5% year-on-year, driven by robust domestic demand.
In terms of operating profit, the improvement in profitability for North American power transformers and Middle Eastern high-voltage circuit breakers continued. Furthermore, as profitability for distribution equipment and distribution transformers improved in the North American and domestic markets, operating profit maintained a solid trend.
HD Hyundai Electric's order intake for the third quarter was $980 million, a 19.1% decrease from the same period last year. The company explained that this reflects base effects following large-scale orders totaling $3.231 billion in the first half of this year.
A representative from HD Hyundai Electric stated, "Based on our integrated supply capabilities covering everything from power transformers to distribution transformers and equipment, we will strengthen our differentiated competitiveness and further expand our position in the global power infrastructure market."
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