Korean power equipment manufacturers expand factories one after another in response to surge in electricity demand due to AI, EVs, etc. = Korea

LS Electric, an electrical equipment manufacturer, plans to expand its factory to reduce its annual production capacity for high-voltage transformers from about 200 billion won (about 22.863 billion yen) to 400 billion won by 2025.
The company has also acquired 51% of the shares of transformer manufacturer KOC Electric. This will allow it to expand its ultra-high voltage transformer manufacturing facilities and reach a scale of 100,000 units by the end of 2025.
In addition, Hyosung Heavy Industries will invest 100 billion won (approximately 11.433 billion yen) to build a new plant in the U.S. and a new plant in Changwon, South Korea.
Hyundai Electric, a power equipment manufacturer, will also increase production capacity at its Alabama plant. The reason Korean power equipment manufacturers are expanding their plants one after another is the demand for power grids.
Along with the increase in renewable energy generation, the demand for power-intensive technologies such as artificial intelligence (AI) and electric vehicles (EV) is also increasing rapidly, and the demand for power grids is increasing in countries around the world.
The country is facing a shortage of power facilities due to reshoring of manufacturing industries as well as demand for the construction of new power grids and replacement of aging power grids due to an increase in renewable energy generation.
Hyundai Heavy Industries' heavy industry division has an order backlog of 4.1 trillion won (about 468.821 billion yen), equivalent to three years' worth of orders. Many Korean companies are in the process of accepting orders until 2026.
The company has already secured orders from this market.