South Korea-based Hyosung Hico is doubling down on its commitment to Memphis—literally.
On Wednesday, May 14, the manufacturer announced a $50.8 million expansion of its South Memphis facility, a move that will double its production capacity for large power transformers and bring more than 100 new jobs to the area.
Located on Riverport Road in the former Mitsubishi Electric Power Products facility, Hyosung Hico’s 360,000-square-foot plant already employs around 400 Memphians. The expansion will include the addition of an 18,000-square-foot testing facility and room for continued growth across the site’s 200 acres.
“We couldn’t have had a better location,” said Jason E. Neal, president of Hyosung Hico. “This is going to be the first of many continued investments in our Memphis plant.”
The announcement comes during Memphis in May—fitting, as South Korea is this year’s honored country. But this moment goes beyond symbolic timing. For Memphis, it’s a tangible win, signaling progress and investment in the city’s future.
Hyosung Hico, a subsidiary of Hyosung Heavy Industries Corp., is on track to become the nation’s largest producer of large power transformers by 2027. With a focus on quality and innovation, the company is one of the few domestic producers capable of building 765-kilovolt transformers, which enable high-voltage transmission over long distances.
“Being able to produce these kinds of transformers right here in Memphis is huge—for us and for the energy industry in the U.S.,” Neal said.
The expansion also brings economic benefits to the community. According to the Greater Memphis Chamber, most of the new roles will be production-related and offer an average wage of $30 an hour.
“Expansions like this are the bread and butter of economic development,” said Gwyn Fisher, Chief Economic Development Officer at the Greater Memphis Chamber. “Many years, up to 75% of our net new jobs come from businesses choosing to grow here.”
Memphis Mayor Paul Young welcomed the announcement, calling it a vote of confidence in the city’s economic future.
“Memphis is proud to be home to Hyosung Hico’s U.S. manufacturing headquarters,” Young said in a statement. “This expansion further underscores our city’s competitive edge in the global energy market.”
Since acquiring the Riverport Road facility in 2020 and investing $45 million in renovations, Hyosung Hico has relied on local talent and infrastructure to power its growth. With support from the Greater Memphis Chamber, partnerships with local schools, and creative hiring strategies like drive-up interviews and job fairs, the company has tapped into the strengths of Memphis’ workforce.
“If we didn’t have a solid job market in Memphis, I don’t know if this would be possible,” Neal said. “But the fact that there are so many skilled folks interested in working with us—that makes this expansion possible.”
Backed by an 11-year PILOT (payment-in-lieu-of-taxes) incentive approved in 2019, the company previously committed to investing $86.9 million and creating 400 jobs by 2027. With this latest announcement, they’re not only on track—they’re accelerating.
“Memphis has been a dream for Hico,” Neal added. “The people, the transportation, the central location—it doesn’t get any better.”
