ULSAN -- Right below the world’s biggest shipbuilder HD Hyundai Heavy Industries' shipyard in the southeastern industrial city of Ulsan, HD Hyundai Electric is gaining momentum in the energy sector with its advanced transformer manufacturing facility.

The electrical equipment maker showcased its 500-kilovolt transformer production line on Wednesday, in which an investment of 80 billion won ($61 million) was made in 2020, during a period of declining profits and challenging market conditions.

Such high-voltage transformers modulate large quantities of electricity across extensive distances, catering to the growing demands fueled by the global transition to renewable energy generation and the necessity to revamp outdated power infrastructures in developed nations.

“Our 500kV plant, equipped with automated systems and 3D modeled digital blueprints, has boosted productivity by 20 percent and slashed the rate of defects by 80 percent,” said Yang Jae-cheol, the head of HD Hyundai Electric’s transformers design and production division.

HD Hyundai Electric, which competes with global giants such as ABB, Siemens and Hitachi, recorded a 29.8 percent rise in sales in the July-September period compared to a year ago, achieving a double-digit operating margin for the first time since its separation from the parent company in 2017.

The company has been on a streak this year, having secured a multitude of substantial orders globally, including the largest-ever transformer order from Xcel Energy in the US for 213.6 billion won. Additionally, a 79.2-billion-won contract with Danish company Semco Maritime for offshore wind power equipment was confirmed in the same month.

The facility was noticeably busy with 500 megavolt-amperes, or MVA transformers prepped for Saudi Arabia's Neom city project, part of a combined 134.8-billion-won contract order from Al Gihaz, the Saudi energy company, which was secured over the two months. A single unit can supply power to around 55,000 households in Saudi Arabia, HD Hyundai said.

Yang highlighted the automated iron core stacking system that has replaced manual labor with robotic precision, enhancing the magnetic uniformity of the transformer cores, which is essential for efficient power transmission.

“While human operators were more adept, capable of manually stacking up to 12 silicon steel sheets at a time compared to 1 sheet for these robots, this automation has tightened tolerances from 2 millimeters to nearly 1 mm,” explained Yang.

Increased precision enhances the transformer core's magnetic uniformity, improving efficient power transmission.

In another area, a winding-core assembly demonstrated intricate steel lamination weaving that reduces energy loss. A KIOSK system adjacent to the assembly line offered workers real-time 3D core blueprints, which have phased out the outdated paper models and noticeably improved the coordination between workers with the most up-to-date information, the company said.

To address rising demands for its high-voltage transformers, HD Hyundai Electric's Senior Executive Vice President Kim Young-ki said that a new plant for the steel pin process, which is expected to increase production by 70 units and sales by 140 billion won, is under construction in Ulsan next to the existing four plants.

The company has recently shifted its market strategy to focus more on Europe and Oceania, aiming for an annual sales target of 5 trillion won by 2030, with a nearer-term goal of 3 trillion won by next year.

Despite stiff competition globally, Kim claimed that HD Hyundai Electric holds a robust position, especially in the Americas, where it has led the market for two consecutive years in the ultra-high voltage transformer category.

“While global competitors offer a wider range of products, HD Hyundai Electric's specialization in high-end, high-voltage transformers continues to define its market niche,” said Kim.