Robots and AI Transform Production at HD Hyundai Electric's Distribution Campus

Upon entering HD Hyundai Electric's distribution campus in Cheongju, Chungbuk, the first thing that stands out is the robots moving faster than humans.

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 forklifts, has transformed into an automated logistics space where robots communicate to navigate, stopping whenever a person enters.

As of June 28, industry sources report that HD Hyundai Electric is accelerating its push into the distribution equipment market with the Cheongju campus at the forefront. With the expansion of AI data centers leading to a surge in demand for electrical equipment, 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 products such as air circuit breakers (ACB), vacuum circuit breakers (VCB), molded case circuit breakers (MCCB), and vacuum interrupters (VI). It also consolidates the production capabilities previously scattered across facilities in Ansung and other locations. According to HD Hyundai Electric, the operational launch of the Cheongju campus has increased its distribution equipment production capacity from 5 million units per year to 8.5 million, with plans to expand this to 13 million by 2030.
  A key focus observed on-site is the automation of small-batch, diverse production. The ACB finished product line features processes including semi-automatic assembly, automated testing, product coupling, visual inspection, and packaging. Circuit breakers vary in model and options based on customer needs, making verification time-consuming for workers. HD Hyundai Electric has implemented a digital fitting system that pre-kits components for each product, allowing workers to confirm models and parts through a top kit box during assembly. This system minimizes assembly errors and reduces operational losses.

Most quality inspections have also been automated. 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 conditions. 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 for verification, significantly reducing the time workers previously spent cross-referencing models and options.

The VCB line carries a heightened sense of tension due to the high-voltage 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 about 200 remote operational tests before entering insulation voltage testing, where they must withstand voltages ranging from 40,000 to 80,000 volts 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 of circuit breakers. The VI rapidly 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 robotic technology advances, we may consider introducing automation in this area as well."

The low-voltage product line on the second floor has a higher degree of automation. When materials are transported from the first floor to the second, articulated robots use vision systems to verify and assemble components. Products identified as defective are ejected separately. Only the final box packaging is 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 recent 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%."

Concerns about workforce pushback due to increased automation have been minimal. While repetitive and heavy labor tasks have decreased, the demand for IT, management, and logistics personnel has risen alongside production expansion. The vice president noted, "Automation has reduced manual labor, allowing workers to take on higher-level tasks. Overall, the positive effects outweigh concerns about job security."

A representative from HD Hyundai Electric explained that the Cheongju distribution campus achieves nearly 100% on-time delivery rates through AI. The company enhances its delivery responsiveness by aligning production and supply plans based on demand forecasts at the sales stage, coordinating with supplier delivery schedules.

The vice president added, "We are creating a structure that utilizes AI to predict demand in sales and develop production and supply plans. Our suppliers are also aligning their deliveries with this plan, improving efficiency in both hardware and software aspects."



* This article has been translated by AI.

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