Hyundai Power Transformers USA has announced a $200 million expansion of its manufacturing facility in Montgomery, a move expected to significantly boost domestic transformer production and create about 200 new jobs.

The investment will expand the company’s ability to produce large power transformers, critical components used in high-voltage electricity transmission and grid infrastructure. Construction on the expansion project is expected to begin soon, with completion targeted for mid-2027.

Company leaders said the investment reflects continued confidence in the local workforce and the region’s role in the U.S. energy supply chain.

The expansion will allow the Montgomery facility to manufacture larger and more advanced transformer units domestically, helping address rising demand across the U.S. electric grid. Utilities nationwide are increasing orders for large transformers as infrastructure ages and new renewable energy projects come online.

Officials noted that many of the large transformers currently operating in the United States are approaching the end of their service life, increasing the need for new manufacturing capacity.

Strengthen domestic supply chains

The Montgomery plant, which began operations in 2011, has become a key production hub for Hyundai’s North American operations. With the expansion, the company aims to strengthen domestic supply chains and reduce reliance on imported transformer equipment.

Local and state officials welcomed the announcement, saying the project will further establish Montgomery as a growing center for advanced manufacturing and energy infrastructure production in the southeastern United States.

Once completed, the investment will increase the plant’s overall footprint and production capabilities. Supporting utilities and grid operators as they modernize transmission networks and improve reliability.

The expansion also comes as renewable energy development accelerates across the country. Major projects like the 441 MW solar portfolio currently under construction in Texas by Zelestra, supported by Meta, illustrate the scale of new generation capacity being added to the grid.

Factsheet: Hyundai Power Transformers USA Montgomery Expansion

Company: Hyundai Power Transformers USA

Parent Company: Hyundai Electric & Energy Systems

Project: Montgomery Manufacturing Facility ExpansionLocation: Montgomery

Total Investment: $200 million

Expected New Jobs: Approximately 200

Facility Opening: 2011

Projected Completion of Expansion: Mid-2027

Purpose of Expansion:

Increase U.S. production capacity for large power transformers

Enable manufacturing of larger, high-voltage transformer units

Support modernization of the U.S. electric grid

Strengthen domestic energy equipment supply chains

Industry Context:

Large power transformers are critical for long-distance electricity transmission.

Many U.S. grid transformers are aging and require replacement or upgrades.

Growing electricity demand and renewable energy integration are increasing the need for new transformer capacity.