Iljin Electric’s $333 M high-voltage transformer deal in US
The heavy electric device company plans to expand production capacity following its biggest-ever deal.
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South Korea, Seoul: The heavy electric device company plans to expand production capacity following its biggest-ever deal.
Iljin Electric Co. has won a 431.8 billion won ($333.2 million) order, its largest-ever, to supply high-voltage transformers to a US energy company, the South Korean heavy electric equipment producer announced in a regulatory filing on Monday.
The company will build and supply 15 different types of transformers, including 345 kV ones, to the US energy company on the East Coast from 2026 to 2030. The name of the US company is being kept confidential. This is the biggest single order for the company since its inception in 1968, it said, and thanks to it, Iljin Electric’s transformer factory will fully run until 2026.
The company plans to ramp up its production capacity to deliver the transformers worth 433 billion won in 2026 from 260 billion won in end-2023 on expectations of additional heavy electric equipment orders from the US, with the growth of investments in replacing old energy infrastructure and building new renewable energy power plants under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act.
According to the US Energy Information Administration, the country’s power generation could grow 32% from 2023 to 1,543 GW in 2030. About 70% of large transformers installed across the US are 25 years or older, nearing the average transformer lifetime of 30 to 40 years, which means that replacement demand for transformers is likely to grow.
Source: The Korea Economic Daily