Inheung Industry, a key supplier to HD Hyundai Electric, will invest 64 billion won ($47 million) in Ulsan to build a production line for small and medium-sized finished transformers. The company aims to significantly expand its business scope from transformer enclosure manufacturing to finished product production, actively responding to the recent surge in global power grid demand.
The Ulsan Metropolitan City government and Inheung Industry signed a memorandum of understanding (MOU) for the new transformer plant investment at City Hall on Friday.
Under the agreement, Inheung Industry will invest a total of 64 billion won in the KCC Ulsan General Industrial Complex to establish a finished transformer plant equipped with state-of-the-art facilities. Founded in 2010 and headquartered in Gyeongju, North Gyeongsang Province, Inheung Industry has primarily produced high-quality transformer enclosures based on solid technological capabilities. Using this large-scale investment as a stepping stone, the company plans to elevate its standing from a simple component and enclosure manufacturer to an independent manufacturer of small and medium-sized finished transformers.
Demand for power equipment has been exploding worldwide recently, driven by the spread of the artificial intelligence (AI) industry and the expansion of data centers. Inheung Industry's preemptive investment is expected to strengthen the company's global competitiveness and contribute significantly to the expansion of Ulsan's power equipment industry ecosystem and increased exports.
The agreement also includes specific measures for mutual growth aimed at revitalizing the local economy. Inheung Industry will prioritize hiring Ulsan residents when recruiting personnel needed for plant construction and future operations, creating quality jobs. The company also pledged to actively use Ulsan-based businesses for construction work and procurement.
The Ulsan city government, in turn, plans to provide full administrative support, including various permits and approvals, to ensure the successful implementation of the new investment and timely plant operation.
"I deeply appreciate Inheung Industry's bold decision to invest in Ulsan despite difficult economic conditions and its preparation for a new leap forward," Ulsan Mayor Kim Doo-gyeom said. "We will continue to create an optimal business environment so that excellent companies can grow and succeed in Ulsan without wavering."
