South Korea-based HD Hyundai Electric has held a groundbreaking ceremony for a second manufacturing plant at its Montgomery, Alabama site, committing $200 million (€171.77 million) to expand ultra-high-voltage transformer production capacity for the North American market, according to a Korea Times report.

The new facility will span 29,000 square metres within the existing Montgomery site and is scheduled for completion in April 2027.

The investment will expand ultra-high-voltage transformer production capacity by 50 per cent and establish new testing and production lines for 765-kilovolt transformers, a component experiencing growing demand as the United States develops high-voltage backbone transmission networks to modernise its national power grid.

Once operational, the plant is expected to generate approximately 200 billion won (€120 million) in additional annual revenue. The company also plans to hire approximately 200 additional workers upon completion, adding to its current Montgomery workforce of around 460 employees.

A company official said: "The North American manufacturing subsidiary has played a pivotal role in strengthening our foothold in the U.S. market through localised manufacturing. With the successful completion of the second plant and additional expansion at our Ulsan facility scheduled for September, we expect to further reinforce our leadership in the North American ultra-high-voltage transformer market."

Established in 2011, HD Hyundai Power Transformers USA was the first transformer manufacturing facility built in the United States by a Korean electrical equipment company and remains the country's largest power transformer production site.

The company has invested steadily in the Montgomery location over more than a decade, with the subsidiary's annual revenue growing from approximately $100 million (€85.89 million) in 2017 to roughly $400 million (€343.55 million) in 2025.

The Montgomery expansion complements a separate capacity increase planned at the company's Ulsan facility in South Korea, scheduled for September 2026.

Read the full details of HD Hyundai Electric's Alabama expansion in the complete report.