News Summary
Hyosung HICO, a South Korean power transformer manufacturer, is set to invest $51 million in expanding its Memphis facility. This expansion will create 123 new jobs and increase the plant’s capacity, solidifying Memphis’s status as a manufacturing hub. The company is committed to enhancing the energy infrastructure in the U.S. and meeting the growing demand for power transformers. The investment follows substantial prior commitments to develop the plant since its acquisition in 2019.
Memphis, Tennessee – Hyosung HICO Announces Major Expansion Investment
Hyosung HICO, a South Korean manufacturer specializing in power transformers, is set to expand its operations in Memphis, Tennessee, with a significant investment of $51 million. This expansion will lead to the creation of 123 new jobs in Shelby County, strengthening the local economy and reinforcing Memphis’s status as an advanced manufacturing hub.
The manufacturing facility, which spans 360,000 square feet on a 200-acre site, benefits from its advantageous location, with direct access to rail and water transport. The expansion is anticipated to double the plant’s capacity to produce various power transformers, aligning with Hyosung HICO’s strategic goal of becoming the number one supplier of large power transformers in the United States by 2027.
Currently, the Memphis facility employs around 400 people and is recognized as the first plant in the U.S. capable of producing 765kV level transformers. The planned expansion underscores the company’s commitment to the U.S. market, seen as crucial for maintaining competitiveness in the sector.
Investment Details and Job Creation
The investment by Hyosung HICO demonstrates a significant long-term commitment to the region, following their purchase of the Memphis plant from Mitsubishi Electric in 2019. Since this acquisition, the company has made substantial investments to enhance its capabilities and workforce.
To support Hyosung HICO’s initial investment in 2019, the Memphis and Shelby County Economic Development and Growth Engine (EDGE) approved $10 million in tax breaks. Additionally, a $5 million state grant was allocated to facilitate the facility’s operations. These incentives underscore the business-friendly environment of Tennessee and the state’s skilled workforce, which have attracted Hyosung HICO’s expansion in the area.
Hyosung HICO’s Role in Energy Infrastructure
Hyosung HICO has made a mark by supplying power transformers not only to major U.S. utilities but also for renewable energy projects, including solar power facilities. The facility in Memphis plays a foundational role in the company’s strategy aimed at enhancing U.S. energy infrastructure.
The expansion is expected to create valuable job opportunities in Shelby County, which is essential for the local economy, especially in sectors related to advanced manufacturing. This move further positions Memphis as a center for manufacturing excellence in the United States.
Background Context
Hyosung HICO’s expansion is an integral part of its growth strategy, responding to increasing demand for power transformers amid the evolving energy landscape in the U.S. The company’s vision emphasizes its role in bolstering the energy infrastructure necessary for future sustainability and efficiency in energy consumption.
As companies continue to invest in technology and innovation, the strategic expansion of Hyosung HICO in Memphis is indicative of a broader trend in the industry whereby manufacturers are looking to enhance production capabilities to meet future energy needs. This expansion not only reflects Hyosung HICO’s plans for growth but also highlights the importance of local and state initiatives in fostering manufacturing investment in Tennessee.
Deeper Dive: News & Info About This Topic
- Commercial Appeal
- Wikipedia: Transformers (electrical)
- Tennessee Lookout
- Google Search: Hyosung HICO Memphis expansion
- Action News 5
- Google Scholar: Hyosung HICO
- Business Facilities
- Encyclopedia Britannica: Manufacturing Jobs
- Local Memphis
- Google News: Hyosung HICO expansion
