SEOUL, March 07 (AJP) - South Korea's HD Hyundai Electric has broken ground on a $200 million second transformer manufacturing plant in Alabama to meet surging power grid demand driven by artificial intelligence (AI) infrastructure and a resurgence in U.S. manufacturing.
The power equipment maker held a groundbreaking ceremony on Saturday at its North American subsidiary in Montgomery. The new facility, spanning 48,215 square meters, is scheduled for completion in April next year.
The expansion will boost the company's ultra-high-voltage transformer production capacity by 50 percent. To expedite delivery for clients such as AI data centers, which increasingly place bulk orders, the expanded facility utilizes an internal railway system that cuts transportation time by more than a week.
"Through the establishment of the second plant, we will prepare for the future represented by AI by building and strengthening the U.S. transmission grid," HD Hyundai Vice Chairman Cho Seok said at the ceremony.
Demand for power transformers has skyrocketed as tech companies build power-hungry data centers and the Trump administration pushes to bring manufacturing facilities back to the United States. Local politicians, including Alabama Senators Tommy Tuberville and Katie Britt, welcomed the investment via video messages, highlighting the critical role of transformers in energy policy and national security.
Amid stricter U.S. immigration enforcement under the current administration, HD Hyundai Electric also emphasized its commitment to local hiring and strict visa compliance. The company plans to add about 140 local workers to its current workforce of roughly 460 once the second plant is completed.
"We strictly verify immigration status during hiring and ensure all visiting staff enter with proper visas," said Kim Young-chul, Chief Operating Officer of the Montgomery plant.
Since establishing its first Montgomery plant in 2011, the subsidiary's revenue has quadrupled from $100 million in 2017 to approximately $400 million in 2025. The company expects the second plant to generate an additional 200 billion won in annual sales.
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