HD Hyundai to build power distribution device plant in Cheongju
Hyung-Kyu Kim
Feb 20, 2024 (Gmt+09:00)
Kim Young-hwan, governor of North Chungcheong Province(from left), Cho Seok, CEO of HD Hyundai Electric and Shin Byung-dae, deputy mayor of Cheongju
South Korea's HD Hyundai Electric Co. announced on Tuesday that it will invest 117.3 billion won ($87.72 million) in building a new medium and low-voltage circuit breaker factory in Cheongju, North Chungcheong Province.
The company signed an investment agreement with North Chungcheong Province and Cheongju City on Feb. 19.
The company aims to double its production capacity and capitalize on the booming demand for power distribution equipment, particularly in the US market.
HD Hyundai Electric will build a smart factory on 85,420 square meters of land in the Cheongju Central Valley General Industrial Complex by October next year.
Currently producing 7.5 million units annually at its Ulsan plant, the company aims to boost production to 13 million units by 2030 through the new facility and further expansions planned after 2025.
This plan aligns with the rising demand for distribution equipment replacements in key markets like South Korea and the US.
Power distribution equipment plays a critical role in delivering electricity from power plants to end-users.
The growing prominence of renewable energy sources, particularly solar power plants, has fueled order increases in the US market, which HD Hyundai Electric intends to capitalize on.