Electrical power equipment maker Hyosung Heavy Industries will establish its first U.S. manufacturing facility in Memphis, Tennessee officials announced Friday.
The South Korean company, which produces transformers, switchgear, flexible AC transmission systems, energy storage systems, and other products, expects the project to create 410 new jobs over seven years. The Memphis Commercial-Appeal reported that the company plans to invest nearly $87 million in a former Mitsubishi Electric transformer factory on the city’s southwest side.
Mitsubishi Electric officials announced the six-year-old plant would close and be sold to a rival power equipment company last month.
Hyosung will produce advanced power transformers at the plant, which is expected to begin operations early next year.
Sunghoo Ahn, a senior company vice president, told the Commercial-Appeal that although the plant will be Hyosung’s first in the U.S., the company has operated in the American market for two decades. He also suggested that the Hyosung transformers will see higher demand than those produced by Mitsubishi.
“The future is bright for Memphis and we look forward to working and growing with the local community as we expand in North America,” CEO Takeshi Yokota said in a statement.
