A view of a high voltage transformer manufacturing plant in Memphis, Tennessee, the United States, Hyosung Heavy Industries acquired from Mitsubishi Electric Power Products. (Photo: Hyosung Heavy Industries)

Hyosung Heavy Industries has acquired a high voltage transformer manufacturing plant in Memphis, Tennessee, from Mitsubishi Electric Power Products Inc. (MEPPI) to enter the U.S. power market.

The move is designed to help Hyosung avoid anti-dumping duties, expected to be imposed by U.S. protectionist trade steps, by directly producing and selling transformers there, and secure competitiveness in the U.S. market, the world’s biggest power one.

Hyosung Heavy Industries said on Dec. 16 the company took over Memphis MEPPI facility in Tennessee, the United State, for $46.5 million (54.5 billion won).

The Memphis facility will produce core-type transformers, which can be used in a variety of industries, starting next first half. Core-type transformers account for 95 percent of the global transformer market.

‘Hyosung Does Not Rest on Its Laurels’

Hyosung Group has decided to inaugurate the group’s integrated production technology center. The integrated production technology center is in charge of overseeing core process and equipment technology operation in the textile, advanced materials and chemical business divisions.

The center consists of four teams with 26 technology staffers from Hyosung R&D Labs, Hyosung TNC, Hyosung Advanced Materials, and Hyosung Chemical.

The inauguration of the group’s integrated production technology center is aimed at designing new processes on its own through collaboration with major plants and Hyosung R&D Labs’ core technology staff and achieving technology upgrade by improving the conventional production processes.

The center plans to increase manpower by securing and nurturing manpower specializing in basic designs on future processes and major equipment.

Hyosung Group possesses 548 patents on textiles, 708 patents on advanced materials, and 1,037 patents on the chemical segment in Korea and abroad.

The center plans to boost synergetic effects of independent technologies. Hyosung Group Chairman Cho Hyun-joon said (Hyosung) will not rest on the global No. 1 products, considering them as global No. 1 technologies, and the group will achieve technology convergence by combing technologies.

Hyosung owns nine global top-ranked products, including spandex, polyester, tire cord, and safety belt resin. Products like tire cord, and safety belt resin occupy global markets.

Chairman Cho, born in Seoul in 1968, graduated from St. Paul’s School, Yale University Politics Department, Keio University Law School. He had stints with Mitsubishi Corp. in Tokyo and Mogan Stanley Tokyo Office. He entered Hyosung in 1997, and he was promoted to chairman of Hyosung Group in 1997.

Hyosung Advanced Materials’ Carbon Fibers Most Likely to Benefit from Japan’s Export Curbs to Korea

As words circulated that carbon fibers are included in Japan’s imposition of additional export curbs to Korea, Hyosung Advanced Materials, a maker of carbon fibers, has become a subject of public attention.

 
A project to expand Hyosung Advanced Materials’ carbon fibers plant is to be dedicated next year.

Its production capacity will likely be redoubled. Security business circles said Hyosung Advanced Materials’ carbon fibers are used to produce hydrogen fuel tanks, and possible expansion of its uses to hydrogen car production is attracting attention.

Figures released by Korea Exchange on July 23 showed that Hyosung Advanced Materials stock prices closed at 128,000 won, up 0.79 percent over previous day’s trading. Hyosung Advanced Materials share prices had climbed up 7.11 percent so far this year since the Japanese government’s initial export curbs to Korea was made public.

Carbon fibers are dubbed “dream material” since they weigh one-fourth of that of metal, but boast a 10-fold intensity.

Carbon fibers have been picked up as one of the group’s future growth engines. In this regard, Hyosung Group Chairman Cho in person involved in spearheading Hyosung Advanced Materials’ collaboration with Saudi Arabian oil company Saudi Aramco.

The two companies recently signed a deal on a joint venture on carbon fiber production.

Japanese companies own a 70 percent share in the global carbon fibers market, 40 percent of which is possessed by Toray Industries of Japan.