Iljin Electric has won 431.8 billion won worth of transformer orders in the U.S

Iljin Electric has won 431.8 billion won worth of transformer orders in the U.S: COMPANY / Reporter Paul Lee / 2023-11-28 05:34:00

[Alpha Biz=(Chicago) Reporter Kim Jisun] Iljin Electric announced on the 27th that it has signed a long-term supply contract for ultra-high-pressure power transformers worth 431.8 billion won with an energy company in the eastern United States. It is the largest since the establishment of a single item.

There are 15 types of orders, including 345kV transformers, and they will be delivered sequentially for five years from 2026 to 2030. Iljin Electric explained that this order has filled all transformer production capacity (CAPA) by 2026.

According to the U.S. Energy Information Administration (EIA)'s "Yearly Energy Outlook 2023," U.S. power generation is expected to surge from 1168GW in 2023 to 1543GW in 2030 as demand for electricity increases due to electrification of energy sources and investment in new plants. 70% of large transformers in the United States are expected to be in constant demand for replacement over 25 years after installation.

To cope with the soaring demand for transformers, Iljin Electric decided to invest 68.2 billion won in the Hongseong plant to expand the transformer plant and secure the investment through a paid-in capital increase.