Hyosung to spend $157 million on new Memphis transformer plant

Hyosung HICO, Ltd. will expand its Memphis, Tennessee headquarters to the tune of $157 million, according to a release from the Tennessee governor’s office. The money will go towards the construction of a new factory at its company headquarters for building 765kV transformers. According to the company, the new plant will increase Hysung HICO’s manufacturing capacity by 50% and create 240 new jobs.

The November 12 announcement follows a tour of Asia by Tennessee Gov. Bill Lee and Deputy Gov. Stuart Whorter and a previous announcement Hyosung HICO would spend $51 million on the site in May. According to the governor’s office, the expansions bring the total amount invested by the South Korean electrical equipment company in Tennessee since 2019 to $300 million.

Hyosung Heavy Industries, Hyosung HICO’s South Korean parent company, specializes in transformers, substations, and other electrical infrastructure.

What people are saying

“This additional expansion reflects our shared success with the State of Tennessee and the partnership between our U.S. operations and our headquarters in South Korea,” said Jason E. Neal, Hyosung HICO president and senior executive VP of HICO America. “Together, we’ve built more than a manufacturing facility; we’ve built opportunity. Our employees are the quiet force behind the economic growth that defines Memphis and the broader ‘Digital Delta’, helping us become the leading domestic manufacturer of power transformers. As we expand our business, including 765kV solutions, transformers, switchgear and DC solutions, we remain committed to advancing American manufacturing, strengthening our community and honoring the Korea-America collaboration that fuels our success.”

“Tennessee’s pro-business climate, low taxes and highly skilled workforce make our state a top destination for global companies. Hyosung HICO’s $150 million investment and 240 new jobs in Memphis reflect the strength of our economy and our commitment to building strong and lasting international partnerships,” said Gov. Bill Lee. “We look forward to supporting this company’s continued growth and creating more opportunities for Tennesseans.”

“When companies choose Tennessee, it’s a clear testament to our strong business climate and leadership in innovation. When they choose us again, it underscores the lasting partnerships we’ve built through international engagement – and important to today’s announcement – our commitment to advancing critical industries like power,” said Deputy Gov. and TNECD Commissioner Stuart C. McWhorter. “I’m grateful to Hyosung HICO’s leadership for their continued trust in our state and remain committed to supporting their success.”

“The continued investment from HICO represents exactly what we envision for Memphis, because we are a city where global innovation meets local talent,” said Memphis Mayor Paul Young. “Hyosung HICO’s decision to grow here shows confidence in our workforce and infrastructure, as well as a shared vision for inclusive economic growth. Memphis is in an Era of Yes, and private investments in our economy like this show Memphis is ready to do business.”

Manufacturers investing in Tennessee

Schenider Electric opens new electronics plant in Tennessee
The company didn’t specify how much the medium-voltage products plant cost or how many it would employ.

Aqua Membranes to spend $6.6 million on new Tennessee water-treatment products factory
The Albuquerque-based company, which produces reverse-osmosis membranes, will hire 95 people at the site.

Anatolia Cabinet and Millwork to build new $9.6 million cabinet millwork factory in Baxter, Tennessee
The furniture company says it will be the first in the state with an “AI-integrated production system.”

Investing in American manufacturing in 2025 

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.