HD Hyundai Electric said Tuesday that it has decided to invest 198 billion won in the phase 2 investment for its Cheongju power distribution campus in North Chungcheong Province.
The company plans to build a production cluster at the Cheongju campus over 26 months and expand its production capacity. This is aimed at consolidating production hubs by relocating the production of switchgear and distribution transformers, which were previously manufactured at the Ulsan Seonam Plant, to the Cheongju power distribution campus.
HD Hyundai Electric operates three production facilities in South Korea: the Ulsan Plant, the Ulsan Seonam Plant, and the Cheongju power distribution campus. The Ulsan Plant has primarily produced power equipment and rotating machinery, the Ulsan Seonam Plant has produced switchgear and distribution transformers, and the Cheongju power distribution campus has mainly manufactured medium- and low-voltage circuit breakers.
An official from HD Hyundai Electric explained that this move is to respond to the continued trend of mega-project orders and package orders for power distribution equipment driven by increasing demand for AI (artificial intelligence) data centers.
The company also disclosed on the same day that it recorded consolidated revenue of 1 trillion 179.9 billion won and an operating profit of 284.5 billion won in the third quarter of this year. Revenue increased by 18.5% and operating profit rose by 15.1%, respectively, compared to the same period last year.
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