Cho Hyun-joon Visits US: "Must Increase Market Dominance"

Post-COVID On-Site Management
Utilizing Tennessee Plant as Forward Base
Development of Financial Technology and Advanced Materials
Demand for Thorough Localization and Proactive Response

[Asia Economy Reporter Choi Dae-yeol] Cho Hyun-joon, Chairman of Hyosung Group, tightened on-site management reins in the United States, the world's largest market, in preparation for the full-fledged post-COVID-19 era.

In the wake of the pandemic crisis, as the global market environment has become uncertain, this move is a strategic decision based on the judgment that while strengthening the position of the existing number one business, it is essential to first gain recognition for technology and quality in the core market, the United States, to gain momentum for expanding new markets. Since the Biden administration took office, the U.S. has decided to invest $1.2 trillion in infrastructure improvements such as power grids and renewable energy, and the industry expects the market to expand rapidly, focusing on social overhead capital (SOC), energy, and automotive sectors.

According to Hyosung on the 13th, Chairman Cho visited the ultra-high voltage transformer factory in Memphis, Tennessee, early this month to grasp local market trends and review future strategies. He also met with Bill Hagerty, U.S. Senator from Tennessee, toured the local factory together, and exchanged opinions on ways to revitalize the regional economy. He requested cooperation and support for Hyosung's business in the U.S. Senator Hagerty reportedly responded that he would actively support at the federal government level, the company said.

Hyosung had previously acquired a local factory from a Japanese company in 2019 to secure a production base in the U.S. The ongoing expansion project is expected to be completed by the end of this year, enabling the production of 60 ultra-high voltage transformers annually. This is more than double the original target, and the company expects sales to exceed $100 million next year. Hyosung plans to use this site as an advanced base for its heavy industry division. In addition to responding to the demand for replacing the U.S. power infrastructure, it plans to target the renewable energy market, including energy storage systems (ESS) and static synchronous compensators (STATCOM).

Chairman Cho Hyun-joon of Hyosung Group (right) met with U.S. Senator Bill Hagerty (left) at Hyosung Heavy Industries' Memphis plant in Tennessee to discuss mutual cooperation plans.

Chairman Cho proposed business cooperation with the Tennessee Valley Authority to Senator Hagerty and discussed plans to operate industry-academia cooperation programs with major local universities to cultivate technical personnel in the electrical equipment field. He also expressed his intention to help establish a parts supply system utilizing local companies. Cho said, "We will strive to nurture local heavy industry technology experts and strengthen partnerships with power companies to contribute not only to mutual growth with the Tennessee region but also to the improvement of the U.S. power market infrastructure."

Then, on the 10th (local time), he visited Nautilus Hyosung America (NHA), the U.S. subsidiary of Hyosung TNS, located in Dallas, Texas. He inspected the exhibition hall and products and reviewed marketing strategies and market penetration plans. Hyosung TNS is a company engaged in the automated teller machine (ATM) business and entered the U.S. market in the mid-2000s. It holds a 73% market share in the small-scale ATM market, ranking first. It supplies large volumes to major banks with differentiated functions such as recyclers.

Chairman Cho also met with local finance and IT experts to exchange views on rapidly changing market trends. The company explained that, as the pace of digital transformation in local finance and payment trends accelerates, he urged strong innovation and technological development to survive in the market. The company plans to develop software and platforms for kiosks used in virtual currency transactions in cooperation with financial institutions in the U.S.

Along with this, as the local automobile market recovery has become clear after COVID-19, and demand for eco-friendly vehicles is expected to increase significantly, he asked to focus on developing and expanding the supply of tire cords usable for electric and hydrogen vehicles. The company also decided to accelerate the development of advanced materials used in tire cords for electric vehicles, such as aramid, and automotive materials like carpets. Chairman Cho said, "The U.S. is the core of the rapidly changing global market in the post-COVID era," adding, "We must enhance our dominance in the U.S. market through thorough localization strategies and proactive customer-centered responses."

This content was produced with the assistance of AI translation services.