Hyundai Power Transformers invests $200 million in Montgomery

The company’s expansion also will create 200 new jobs

Local and state leaders joined Hyundai Power Transformers executives at the company’s expansion announcement on Friday. Photos courtesy of the Montgomery Regional Chamber of Commerce.

Hyundai Power Transformers USA is investing $200 million to expand its Montgomery manufacturing operations, creating 200 new jobs and increasing domestic production capacity for larger power transformers critical to the nation’s electric grid.

The new facility, scheduled to be open by mid-2027, will enable HD-HPT to manufacture even larger transformer units in the United States. This will bring the company’s total investing in Montgomery to $277 million and 600 jobs.

“This expansion reflects our long-term confidence in Montgomery and the state of Alabama,” said Jinho Kang, president of HD Hyundai Power Transformers USA. “When we made the decision in 2011 to locate HD-HPT in Montgomery, we saw a community committed to partnership, workforce excellence and infrastructure support. The collaboration between state and local leaders, economic development partners and workforce training organizations made this growth possible — and continues to position us for long-term success.”

According to a release on the expansion, approximately 70% of the nation’s large power transformers are currently in need of replacement. HD-HPT now supplies more than 15% of U.S. large core-type transformers — a significant contribution to strengthening and modernizing the nation’s power grid.

“Hyundai Power Transformer’s $200 million expansion reinforces Montgomery’s growing role in strengthening America’s power grid and securing critical energy infrastructure. Investments like this create quality jobs for our residents and position Montgomery as a key contributor to the nation’s long-term economic and energy security,” said Montgomery Mayor Steven Reed.

- Sponsor -

The company highlighted the importance of logistics and rail infrastructure, specifically CSX, in supporting its continued operations, as well as AIDT’s development and sustainment of HPT’s five-year associate apprenticeship training program, ensuring a skilled workforce pipeline.

Support for the expansion came from the Alabama Department of Commerce, the city of Montgomery, the Montgomery County Commission, the Montgomery Regional Chamber, AIDT, Alabama Training Network, Business Council of Alabama and numerous regional partners.