Hyosung Heavy Industries Corp. is seeking to localize high-voltage direct current (HVDC) transformers, a key technology for next-generation power grids that remains heavily reliant on overseas suppliers.

The company said Wednesday it held a groundbreaking ceremony for what will be the nation’s largest HVDC transformer plant at its Changwon factory in South Gyeongsang Province.

The facility, covering about 29,600 square meters, is slated for completion in July 2027, with an investment of 254 billion won ($182.3 million).

In addition to the new plant, Hyosung Heavy Industries plans to expand production capacity for large-scale voltage-source converter systems—core components of HVDC converter equipment—and advance related research and development.

Total investment over the next two years will reach 330 billion won. Upon completion, the Changwon plant’s transformer output is expected to increase by more than 20 percent.

“Voltage-source HVDC technology, long dominated by foreign manufacturers, is essential for competitiveness in the future power transmission market and for fostering it as an export industry. Localization is a must,” said Hyosung Corp. Vice Chairman Lee Sang-woon.

Currently, core HVDC transformer technology is dominated by major overseas players such as General Electric Co., Siemens AG, and Hitachi Ltd.

Voltage-source HVDC systems allow long-distance electricity transmission with minimal loss compared to conventional grids and are considered vital for next-generation networks supporting artificial intelligence and big data centers as well as renewable energy facilities.

The significance of Hyosung Heavy Industries’ HVDC project lies in securing core voltage source capabilities domestically.

With the push for technological self-sufficiency intensifying across industries, the plant is expected to bolster Korea’s technology sovereignty and strengthen growth drivers in the domestic power equipment sector.

Hyosung Heavy Industries has pursued HVDC technology development since 2017, completing a successful 200 MW demonstration last year and securing partial proprietary capabilities.

The company now aims to develop 2 GW large-scale systems for national mega-projects and to expand into major overseas markets.

Industry observers credit Hyosung Group Chairman Cho Hyun-joon’s commitment for driving the expansion of the HVDC business. “When the global power market contracted in the 2010s, Hyosung Heavy Industries was mocked as a money pit. But Chairman Cho pushed ahead,” an industry source said.

According to MarketsandMarkets, the global HVDC market is projected to grow at an annual average of 8.1 percent from $12.2 billion in 2024 to $26.4 billion by 2034.

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