South Korea’s Hyosung Group is looking to the US market for growth as the textile and chemicals conglomerate is expanding facilities in America to ride on the Joe Biden administration’s aggressive clean energy policy.
The group said on Monday its Chairman Cho Hyun-joon recently embarked on a US trip to visit its American plants and meet politicians to discuss ways to cooperate in an industry shift toward sustainable growth.
During his stay in the US, Cho visited Hyosung Heavy Industries Co.’s transformer factory in Memphis, Tennessee, and toured its production line with Tennessee Sen. Bill Hagerty, who asked for ways to revitalize the local economy.
Hyosung is currently ramping up its Memphis factory to meet the growing demand for power facilities.
Once completed by the end of this year, the plant’s annual production of ultra-high voltage power transformers will increase to 60 units worth $100 million in sales, according to Hyosung.
On Friday, Chairman Cho also visited Nautilus Hyosung America Inc., the North American branch of Hyosung TNS Inc., an automatic teller machine (ATM) maker.
In the US market for small ATMs, Hyosung TNS is currently the top player with a 73% share.
Hyosung's ESS facilities AIMS TO ENHANCE US PRESENCE
“The US holds the key to new market dynamics in the post-pandemic era. With thorough localization and a proactive response to customer needs, we must enhance our presence in the US market,” said Chairman Cho.
His US trip comes as US President Biden vows to invest $1.2 trillion to advance the country’s energy grid and renewable energy infrastructure. The US administration aims to achieve 100% clean energy by 2035 and net zero emissions by 2050.
Hyosung Group, which entered the American market in the early 1980s, has so far invested a total of $3 billion in the country mainly in sectors such as power transformers, tire cords and airbag raw materials.
Hyosung operates six local operations, including three manufacturing facilities, in the US, creating 1,400 jobs for Americans.
The group expects sales from the US market to rise to $1.6 billion this year, up 30% from $1.2 billion in 2020.
