On June 14, Hyosung Heavy Industries announced that its subsidiary, Hyosung HICO, has signed a joint venture agreement with a subsidiary of Quanta, a leading North American energy infrastructure solutions company, to establish "HYOSUNG HICO BREAKER, LLC."
The joint venture, set to be established in July, will begin production of high-voltage circuit breakers ranging from 72.5 kV to 800 kV at Quanta's Canonsburg facility in Pennsylvania starting in October.
This agreement follows a meeting in March between Cho and Quanta's CEO and key executives, where they reached a final consensus. Since last year, Cho has recognized the need for a partnership with Quanta to expand in the U.S. power market, focusing on advanced power solutions, including high-voltage circuit breakers and direct current solutions.
Hyosung stated, "The establishment of this joint venture is a strategic move to respond to the increasing demand for power equipment driven by the expansion of data centers and artificial intelligence (AI), as well as the modernization of aging power grids in the U.S." The two companies aim to leverage the joint venture to meet local customers' demands for timely supply and high quality, thereby gaining a competitive edge in the U.S. market.
Quanta, the parent company of the joint venture partner, is the largest EPC (engineering, procurement, and construction) firm in the U.S. for power and energy infrastructure. It has a broad infrastructure solutions business and a strong customer network across the U.S., serving large power demand facilities such as utilities, generation, energy storage systems (ESS), and data centers. Quanta is also the largest employer of skilled labor in North America.
Through this collaboration, Hyosung Heavy Industries aims to maximize its competitiveness in the U.S. power market by combining its globally recognized power equipment technology with Quanta's industry-leading infrastructure solutions capabilities.
Hyosung Heavy Industries is the first domestic power equipment manufacturer to establish both transformer and circuit breaker production capabilities in the U.S., the world's largest power market.
Cho stated, "The two companies have built a strong partnership through collaboration on circuit breakers, substation equipment supply, and transmission and renewable energy projects. Given the explosive growth of the AI industry, enhancing power infrastructure is a critical challenge. We will leverage our successful localization expertise in our U.S. operations, including the Memphis plant, along with the synergy from this joint venture to firmly establish ourselves as a total solution provider in the U.S. power market."
Following the establishment of the high-voltage circuit breaker joint venture, Hyosung and Quanta expect to expand their collaboration into broader areas, including direct current solutions and data centers.
Additionally, Cho Hyun-joon attended a "Korea-Italy Business Roundtable" alongside President Lee Jae-myung, where economic cooperation between the two countries was discussed.
* This article has been translated by AI.
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