On November 17, 2022, the visit of Saudi Arabia's Crown Prince Mohammed bin Salman caused a stir in the South Korean industrial sector. This was due to the announcement of the construction of a smart city called "NEOM City" in Saudi Arabia, with an estimated project cost of about 500 billion won. The NEOM City project is part of Crown Prince Mohammed bin Salman's plan to transform Saudi Arabia's oil-centered economy into a smart city-based economy. The project consists of three parts: "The Line," a self-sufficient linear city that stretches 170 km; "Opagan," an advanced industrial complex floating on the sea; and "Treasure Nature," an eco-friendly tourism resort. The Crown Prince's visit to South Korea was to establish investment and business agreements with South Korean companies for this project, and it was natural for Hyosung Heavy Industries to be involved in such a mega-project.

Through these discussions, Hyosung Heavy Industries has decided to pursue the establishment of a local Saudi Arabian power equipment manufacturer and a local circuit breaker manufacturer with Alfanar, a local Saudi Arabian manufacturer. This decision was made not just because Hyosung Heavy Industries is a South Korean company but because of its proven track record and expertise in the field. Today, let us delve into the world-class capabilities that Hyosung Heavy Industries has demonstrated.

Preserving precious energy: 'ESS'

ESS stands for Energy Storage System, which refers to a system that stores energy. The electricity we use is generated through power plants. Instead of sending the electricity to us as soon as it is produced, it is stored via ESS, ensuring that we never experience a shortage of essential electricity in our daily lives. This enhances safety and improves energy efficiency. For renewable energy sources like solar and wind power, which can be challenging to produce on-demand, ESS technology is crucial for storing energy in advance and using it only when needed. As environmental pollution and resource depletion make renewable energy increasingly important, the value of ESS technology continues to grow. So, what accomplishments have Hyosung Heavy Industries' ESS technology achieved worldwide?

Surmounting Europe's high barriers with Hyosung Heavy Industries' technical prowess

Customers must refrain from entrusting a crucial business like ESS, which relies heavily on technology, to anyone. Especially in the European ESS market, which European companies dominate, it is challenging to enter without high-quality products and advanced technical capabilities. However, Hyosung Heavy Industries secured a contract in 2021 to supply a 50 MW capacity ESS in the Southampton region in collaboration with Downing, the UK's most prominent investment developer. How did they manage this challenging feat? The secret lies in Hyosung Heavy Industries' technical expertise, system design capabilities, operations, and continuous provision of solutions. The Southampton contract in the UK marked a significant milestone, further establishing Hyosung Heavy Industries' name globally.

Triumphing over the world's top companies in a South African contract!

It is well known that the South African power authority is extremely demanding. In June 2022, Hyosung Heavy Industries secured a large-scale project worth 190 billion won, which had to satisfy the exacting South African power authority. Moreover, they faced competition from 18 rival companies, including Tesla. Following rigorous technical evaluations and competition, Hyosung Heavy Industries ultimately won two of the five packages.

This was the first time a South Korean company took on a large-scale overseas project involving ESS installation and infrastructure construction. Hyosung Heavy Industries' technical prowess was acknowledged even in faraway Africa, opening up opportunities for various business expansions in a region just beginning to explore renewable energy projects like solar power and ESS—a veritable blue ocean.

Building energy infrastructure: Hyosung Heavy Industries

The power grid refers to the infrastructure that connects electricity generation at power plants to our usage points. It encompasses power plants that generate electricity, substations that transform electricity into desired voltages or currents, and distribution networks that ultimately supply electricity. In simple terms, it is a system related to everything from electricity generation to its consumption, and this is precisely what Hyosung Heavy Industries does.

Ethiopia's NEW energy road!

Famed for its coffee, Ethiopia, especially its southern region (Southern Nations, Nationalities, and Peoples' Region), required a new power grid. Hyosung Heavy Industries signed a contract with the Ethiopian national power authority to build four new substations, expand two existing substations, and install a 480 km transmission line, totaling a project worth 235.7 billion won. This contract was secured through proactive pre-sales proposals by Hyosung Heavy Industries, which successfully negotiated the change from AIS substations to more environmentally friendly, compact, and reliable GIS substations for the first time in Ethiopia through active communication. As a result, Hyosung Heavy Industries secured a foundation for entering various markets.

Here too? There too?

Hyosung Heavy Industries has successfully won the first-ever digital substation contract in Iceland, a country famous for its auroras. Hyosung Heavy Industries supplied the largest-capacity transformers to Java in Indonesia and even undertook a substation project in Kuwait. Additionally, Hyosung Heavy Industries secured a STATCOM project with Company S, one of the top 5 U.S. utility companies. STATCOM is a device that controls and maintains a constant voltage, enabling the efficient supply of renewable energy. It allows for adjusting production and supply based on electricity usage, making it an essential component alongside ESS for storing power generated from renewable energy sources.

In fact, Hyosung Heavy Industries did not have any supply record previously with Company S, which disadvantaged them in winning the bid. However, through active sales activities and information sharing, they were able to build trust with the client and ultimately be selected as the final bidder. This is the first STATCOM project to be installed in the Company S group, and future additional projects and related business expansions for Hyosung Heavy Industries are anticipated.

The world is still boundless

As the saying goes, "the world is vast, and there's yet more to do." Hyosung Heavy Industries also has a lot to accomplish in the vast world. In 2022, they recorded 509.5 billion won in new orders in Q1, and 942.6 billion won in Q2, thanks to ultra-high voltage transformer contracts centered in Europe, including the UK, Norway, and Finland, as well as orders from Saudi Arabia and South Africa. As the world continues to focus on renewable energy, the demand for Hyosung Heavy Industries' ESS and STATCOM will continue to grow. Hyosung Heavy Industries plans to solidify its presence in Europe through branches in the UK, Spain, Italy, and Germany, and expand its business in the Middle East through branches in the United Arab Emirates, Kuwait, and Saudi Arabia.

Furthermore, through global production bases in Changwon, as well as the United States and China, they will support the decarbonization and energy transition efforts of various countries by meeting their global power grid investment and sophistication needs. With continuous investments, they are vigorously preparing to stir the incoming waters. Hyosung Heavy Industries plans to expand its overseas orders by expanding its transformer plant in Memphis, Tennessee, aiming for an annual target of $100 million (approximately 120 billion won).

Recognized in the field of medium-voltage equipment, which is considered to be the core of energy, Hyosung Heavy Industries is leading the era of low-carbon green life worldwide.