Hyundai Electric acquires full stake in US transformer plant
[THE INVESTOR] Hyundai Electric & Energy Systems said on April 15 it has acquired a transformer plant in the US owned by its sister company, Hyundai Heavy Industries, seeking to tap deeper into the North American market and brace for potential trade barriers.
Hyundai Electric said it has purchased a full stake in the plant in Alabama for 30.9 billion won (US$28.9 million). The factory, which currently employs 300 workers, was established by Hyundai Heavy Industries in 2010.
The plant has annual production capacity of 14,000MVA, which translates into 80 transformers.
Hyundai Electric said it plans to inject an additional 35 billion won to adopt smarter production procedures for the newly acquired plant with a goal to post sales of US$200 million by 2021, double the 2017 amount.
An official from Hyundai Electric said not only will the factory help the company to expand its presence in the US, it will also help the company effectively prepare for the ongoing protectionism trade policies by Washington.
The acquisition of the US plant adds to Hyundai Electric’s global network in Bulgaria and China.
By Song Seung-hyun and newswires (firstname.lastname@example.org)