HD Hyundai Electric to Invest Additional 198 Billion Won in Cheongju Distribution Campus

What happened

HD Hyundai Electric said in a regulatory filing on Oct. 27 that it would invest an additional 198 billion won in the second phase of facility expansion at its Cheongju distribution campus in North Chungcheong Province, with the investment period running from Nov. 1 through June 30, 2029. The company will expand its switchgear and distribution transformer production facilities and introduce automated equipment, aiming to address an increase in large-scale power infrastructure projects, particularly those involving AI data centers, and growing demand for package orders combining multiple types of power distribution equipment; it expects the expanded facilities to generate an additional 250 billion won in annual revenue. Background: the campus was established to consolidate power distribution equipment production; construction of a new low- and medium-voltage circuit breaker factory began in September 2024 and operations commenced in 2025, with the first-phase facility consolidating production previously spread across Anseong, Ulsan and other locations, manufacturing air circuit breakers (ACBs), vacuum circuit breakers (VCBs) and molded case circuit breakers (MCCBs); the second phase adds switchgear and distribution transformer facilities, and the company also plans smart factory systems and automated logistics facilities. Separately, the company reported third-quarter revenue of 1.1799 trillion won and operating profit of 284.5 billion won, up 18.5% and 15.1% respectively from a year earlier, with a 24.1% operating profit margin; revenue from power distribution equipment and new businesses rose 85.8% year on year, reflecting stronger demand for distribution transformers from the semiconductor industry, higher sales in North America and revenue recognition from a battery energy storage system (BESS) project on Anjwa Island in Sinan secured in December 2025; rotating machinery revenue rose 16.5%. Third-quarter new orders totaled $980 million, down 19.1% from a year earlier; following $3.231 billion in first-half orders, the order backlog reached $8.843 billion at the end of the third quarter, up 4.2% from the previous quarter.

Impact and signal

Affected components and suppliers

Source and time

Source: The Elec · 10/27/2026 · View original source