Hyundai Electric & Energy Systems Co., a power equipment and energy solution affiliate of the world’s largest shipbuilding group holding company HD Hyundai Co., has bagged a transformer supply deal in the US, expanding its presence in the global market for the electric device.
The South Korean company said on Tuesday that Hyundai Electric America Corp., its sales unit in Atlanta, signed an $86.3 million contract with American Electric Power (AEP) to supply 3,500 distribution transformers. AEP plans to install the devices in Texas, Ohia and Oklahoma where the company supplies the electricity.
The US, one of the world’s top transformer markets, needs more than 1 million distribution transformers a year, according to industry analyst firm Power Technology Research.
The US distribution transformer market is expected to grow further as the introduction of the Infrastructure Investment and Jobs Act in 2021 spurred replacement of the old power grid and given government-driven investments in renewable energy.
“The global distribution transformer industry is predicted to steadily expand as the conversion to renewable energy accelerates worldwide,” said a Hyundai Electric official, adding the company aims to succeed through customized strategies for customers in the sector.
Hyundai Electric’s shares on Tuesday surged as much as 5.1% to 40,300 won ($32.7) at one point in the South Korean stock markets, although the main Kospi lost more than 1%.
Write to Ik-Hwan Kim at
lovepen@hankyung.comJongwoo Cheon edited this article.
