HD Hyundai Electric Adds 198 Billion Won Investment in Cheongju Power Distribution Complex
On October 27, HD Hyundai Electric submitted a regulatory filing announcing an additional investment of 198 billion won to expand the second phase of its Cheongju power distribution complex, with the investment period running from November 1 to June 30, 2029. The expansion will add switchgear and distribution transformer production lines and introduce automated equipment to meet demand from large-scale power infrastructure such as AI data centers, and the company expects 250 billion won in additional annual revenue. Its third-quarter revenue was 1.1799 trillion won and operating profit was 284.5 billion won, up 18.5% and 15.1% year-on-year, respectively.
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HD Hyundai Electric’s low- and medium-voltage circuit breaker factory at its Cheongju distribution campus. (Photo: HD Hyundai Electric)
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HD Hyundai Electric will invest an additional 198 billion won in its power distribution campus in Cheongju, North Chungcheong Province. The company plans to expand production capacity amid growing demand for power distribution equipment, particularly from artificial intelligence (AI) data centers and the semiconductor industry.
HD Hyundai Electric said in a regulatory filing on Oct. 27 that it would invest 198 billion won in the second phase of facility expansion at its Cheongju distribution campus. The investment period runs from Nov. 1 through June 30, 2029.
HD Hyundai Electric will expand its switchgear and distribution transformer production facilities in Cheongju and introduce automated equipment. The investment is intended 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. The company expects the expanded facilities to generate an additional 250 billion won in annual revenue.
The Cheongju distribution campus was established by HD Hyundai Electric to consolidate its power distribution equipment production facilities. Construction of a new low- and medium-voltage circuit breaker factory began in September 2024, and operations commenced in 2025. The existing first-phase facility consolidated production operations previously spread across Anseong, Ulsan and other locations. It manufactures air circuit breakers (ACBs), vacuum circuit breakers (VCBs) and molded case circuit breakers (MCCBs).
The second-phase investment will add switchgear and distribution transformer production facilities to the existing low- and medium-voltage circuit breaker operations. HD Hyundai Electric also plans to establish smart factory systems and automated logistics facilities to improve production efficiency.
HD Hyundai Electric also 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. Its operating profit margin was 24.1%.
Revenue from power distribution equipment and new businesses rose 85.8% year on year. The increase reflected stronger demand for distribution transformers from the semiconductor industry, higher sales of power distribution equipment in North America and revenue recognition from a battery energy storage system (BESS) project on Anjwa Island in Sinan, South Jeolla Province, secured in December 2025. Revenue from the rotating machinery division also increased 16.5%.
New orders in the third quarter totaled $980 million, down 19.1% from a year earlier. However, following $3.231 billion in orders secured during the first half, the company’s order backlog reached $8.843 billion at the end of the third quarter, up 4.2% from the previous quarter.