Hyosung Heavy Industries is experiencing an over 8% increase in stock prices following the announcement of its plans to establish a high-voltage circuit breaker production facility in the United States, targeting the North American power market.
As of 10:14 a.m. on June 15, the company’s shares were trading at 3,669,000 won, up 29,300 won (8.68%) from the previous trading day, according to the Korea Exchange.
During the session, the stock price peaked at 3,760,000 won.
On June 14, Hyosung Heavy Industries announced that it had signed a contract to establish a joint venture called Hyosung HICO Breaker with a subsidiary of Quanta Services, a U.S. power infrastructure EPC company, through its subsidiary Hyosung HICO. This development has been interpreted as a catalyst for increased buying interest.
The joint venture, set to be established in July, will begin producing high-voltage circuit breakers ranging from 72.5 kV to 800 kV at its facility in Canonsburg, Pennsylvania, starting in October.
With this investment, Hyosung Heavy Industries will become the only domestic power equipment manufacturer to produce both transformers and circuit breakers in the United States.
The company aims to enhance its competitiveness in the local supply chain and respond to the U.S. government's domestic procurement policies by leveraging synergies with its existing high-voltage transformer plant in Memphis, Tennessee.
Notably, the joint venture's ability to produce 800 kV high-voltage circuit breakers is seen as significant, as these are considered crucial for the modernization of the U.S. power grid.
Recently, there has been a growing discussion around investments in high-voltage transmission networks in the U.S. due to increasing power demand driven by the expansion of AI data centers and advanced manufacturing facilities. Market analysts believe that Hyosung Heavy Industries' expansion of local production will enhance its capacity to meet the demand for North American power infrastructure.
* This article has been translated by AI.
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