Top player in global electric market with 47 years of know-how
Hyosung Power Systems & Industrial Machinery PG, the nation’s top electric equipment maker, has its roots in Hanyoung Industry Corp. set up in May 1962, and changed its name to Hyosung Power Systems & Industrial Machinery Corp. in November 1977.
Hyosung Power Systems & Industrial Machinery PG then built a motor plant in Changwon in 1987, an electric control panel plant in 1989 and a gear reducer plant in 1992. In June 1994, the company obtained ISO 9001 certificates for all of its products, and in October 1995, it succeeded in the development of gas-turbine combined heat power generators. In November 1998, it was incorporated into Hyosung Corp. as its Power Systems & Industrial Machinery PG (Performance Group) through the consolidation of its affiliates.
The major products of Hyosung Power Systems & Industrial Machinery PG, which recorded remarkable growth with its revenue soaring more than 2.5 times over the past three years, include ultra-high voltage transformers and circuit breakers, distribution oil immersed transformers, distribution cast resin transformers, electric control panel, iron towers, digital relays, solutions business and solar and wind power generation equipment.
▶ Shift to overseas markets
On the basis of technology accumulated over the past 47 years, Hyosung Power Systems & Industrial Machinery PG is building up solid market shares not only at home but also abroad, including the United States, China, India, the Middle East and Latin America. Particularly, the company boasts world-class competitiveness not only in the manufacture of wind power generators but also in electric system operation, based on its certified designing technology and production capacity as well as accumulated know-how in existing business areas such as industrial machinery and iron tower designing.
Breaking away from home market-oriented strategy, the company is now diversifying into various overseas markets, and has recorded robust growth on the basis of accumulated technology, quality and cost advantages. Hyosung, which had focused on the domestic market by mainly supplying to state utility KEPCO until 2000, is now vigorously advancing into global markets through reorganization and expansion of facilities for the ultra-high voltage electric equipment in its Changwon Plant.
▶ Targeting US, Chinese markets
To make effective market inroads in China, Hyosung in 2006 acquired one of the five Chinese firms, Nantung you bang transformer LLC., recognized by the Chinese government for their quality.
Nantung Hyosung transformer LLC., has absorbed the Korean parent company’s new technology and management know-how to turn into a profitable operation in 2007, and completed a plant which has 21,500-MVA production capacity with a total investment of 80 billion won on May 30, 2008. This new plant, equipped with state-of-the-art manufacturing facilities and systems for ultra-high voltage transformers, has passed the Chinese government’s inspect and began to supply 500-kV transformers, raising expectations for major order receipts from the Chinese government.
In addition, the company made additional investment in its distribution transformer plant in another Chinese offshoot up in Baoding, Hebei Province, to complete a new plant in 2007 and expand the production capacity by 2.5 times. By continuing to make aggressive investments in power-short China, Hyosung plans to emerge as one of the “big three” electric equipment makers on the basis of massive local production system.
The U.S. electricity market is expected to record high growth in the near future, as power transmission cables are worn out and demand for power is increasing to require urgent expansion in ultra-high voltage power lines of the 500-kV class. In fact, Hyosung received orders for supplying 525-kV transformers from BPA, a Washington, D.C.-based federal electricity company, for the first time in early 2006, and has since signed long-term supply contracts with other major U.S. power companies, including AEP, to provide goods and services.
In late 2006, Hyosung became the first Korean company to export 765 kV-class, ultra-high voltage transformers by receiving order for four units from EDELCA, Venezuela’s state utility, succeeding in diversifying into Latin American markets. In 2008, it received order for 500-kV GIS for hydroelectric generation from Brazil’s JIRAU, and has expanded market range to Chile, Argentina and Mexico since 2009.
Moreover, in 2008, Hyosung secured beachhead to advance European market where is a major field of European major companies through continuous obtaining orders from Russia, Spain and Britain with Indian market. Encouraged by this, Hyosung is actively pushing to advance to African markets, starting with Egypt, Libya and the Republic of South Africa.
Hyosung Power Systems & Industrial Machinery Group, under its corporate slogan of “Global Top Energy, Machinery & Plant Solution Provider,” has been enhancing its global competitiveness in electric equipment, industrial machinery, pump and wind power generation system field through continuous, world-leading technological renovation. By placing top priority on maximizing customer values, Hyosung Power Systems & Industrial Machinery PG is determined to make continuous growth and emerge as a global leader through “ceaseless change.”