Export Volumes of Transformers At a Record High

With growing demand for electricity in high-tech industries including artificial intelligence (AI), major countries expanded related infrastructure, and the domestic ultra-high voltage transformer industry achieved record-high exports last year. This trend is expected to continue this year.
According to the Korea International Trade Association (KITA), exports of 10,000kVa (kilovolt-ampere) class ultra-high voltage transformers from Korea last year amounted to USD 1.29898 billion. This is the largest volume since 1977, the year in which related statistics began being recorded. It is the first time in 15 years that it has surpassed the USD 1 billion export barrier.

In terms of export volume by country, the USA ranked first, at USD 738.29 million, followed by Kuwait (USD 93.54 million, approximately KRW 138.2 billion), Canada (USD 93.13 million), the UK (USD 89.87 million), and Saudi Arabia (USD 63,1 million). Among them, this marks the first time that exports to the USA have exceeded KRW 1 trillion.
Driven by demand for replacement of aging power grids in the USA, exports to the United States have steadily increased from USD 108.65 million in 2022, increased nearly seven-fold in just three years. The typical lifespan of the power grid is estimated at around 30 years, but demand has increased rapidly as around 70% of transformers in the USA face their replacement cycle.

HD Hyundai Electric, the first company to enter the U.S. market, is increasing its production capacity with the goal of completing the expansion of its second plant in Alabama this year. Hyosung Heavy Industries is increasing its production capacity, by more than 50%, of its plant in Memphis in the United States, which it acquired in 2020. It also plans to achieve the expansion goal by 2028.
LS Electric plans to secure a comprehensive production and research base in Texas and invest USD 240 million (approximately KRW 350 billion) by 2030 to increase production.

 
 
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