Inside the finished goods warehouse, a large automated case handling robot (ACR) retrieves pallets from a 10-meter-high rack, while a smaller logistics shuttle robot transports them to workers. The warehouse, once bustling with human-operated forklifts, has transformed into an automated logistics space where robots communicate to navigate, stopping whenever a person enters.
As of June 28, the industry reports that HD Hyundai Electric is accelerating its efforts to penetrate the distribution equipment market, leveraging its Cheongju campus. With the rapid expansion of AI data centers, demand for electrical equipment is surging. The company aims to develop medium and low-voltage circuit breakers and distribution solutions as new growth pillars, following its success with high-voltage transformers.
The Cheongju distribution campus serves as a smart production hub for low and medium voltage circuit breakers, producing air circuit breakers (ACB), vacuum circuit breakers (VCB), molded case circuit breakers (MCCB), and vacuum interrupters (VI). It also consolidates production capabilities previously scattered across locations like Ansung. According to HD Hyundai Electric, the operational launch of the Cheongju campus has increased distribution equipment production capacity from 5 million units to 8.5 million units annually, with plans to expand to 13 million units by 2030.
Quality inspections are largely automated as well. Completed ACBs undergo approximately 30 opening and closing tests to verify durability, along with current and characteristic tests to ensure they can trip within a specified time during fault currents. In the visual inspection process, scanning a QR code automatically identifies the model's options and specifications. A vision camera mounted on the robot captures images of all product surfaces, significantly reducing the time workers previously spent manually cross-referencing models and options.
The VCB line carries a heightened sense of tension due to the high-voltage nature of the products. Vacuum circuit breakers, which serve as the main circuit breakers for buildings, are also used in today's trending AI data centers. After assembly, products undergo around 200 remote operation tests before entering insulation voltage tests, where they must withstand voltages ranging from 40,000V to 80,000V for one minute. During testing, the sound of electricity crackling can be heard, as the insulation performance must remain intact for the product to be shipped.
The VI production line manufactures critical components for circuit breakers. The VI quickly interrupts current during fault conditions and must maintain a high vacuum state. If gas infiltrates and reduces the vacuum level, it can compromise the circuit breaker’s performance. While some tests and transfer processes are handled by robots, the precise task of stacking products like a tower before placing them in the vacuum line is still performed by humans.
A company representative stated, "Precision is crucial in this core process, so currently, skilled workers are handling it. As robot technology advances, we may consider introducing automation here as well."
The low-voltage product line on the second floor has an even higher degree of automation. As materials are transported from the first floor to the second, articulated robots use vision systems to verify and assemble components. Any defective products identified during the process are ejected separately. Only the final box packaging is partially handled by humans. One line can produce multiple products through QR recognition, automatically reflecting product specifications and equipment conditions.
Lee Chang-ho, vice president of HD Hyundai Electric, stated during a press briefing, "Our production capacity has increased by about 70% compared to previous factories, and the automation rate has risen from around 70% to an average of 93%."
He explained that there has been minimal pushback from workers regarding the expansion of automation. While repetitive and heavy tasks have decreased due to process automation, the demand for IT, management, and logistics personnel has increased alongside production growth. Lee added, "With automation reducing manual labor, workers are now taking on higher-level tasks. Overall, the positive effects outweigh concerns about job security."
A representative from HD Hyundai Electric noted that the on-time delivery rate achieved at the Cheongju distribution campus, enhanced by AI, is approaching nearly 100%. The company is improving its delivery responsiveness by aligning production and supply plans based on demand forecasts from the sales stage, including coordinating delivery schedules with partners.
Lee stated, "We are establishing a structure that uses AI to predict demand in sales and develop production and supply plans. Our partners are also aligning their supply with this plan, enhancing efficiency in both hardware and software aspects."
* This article has been translated by AI.
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