[Report] HD Hyundai Transformer 'Magic' Doubles Orders While One Person Does Work of Six

Ulsan World's First Automatic Steel Core Layering Equipment
First Factory Media Reveal in 46 Years Since Establishment

On the 7th, at the HD Hyundai Electric 500kV transformer smart factory in Bangeo-dong, Dong-gu, Ulsan, a massive machine dressed in yellow was moving incessantly at 5-second intervals. This machine lifted a thin gray electrical steel sheet about 4 meters long and approximately 0.23 mm thick, placed it on a nearby platform, and paused briefly. Numerous sensors on laser equipment installed on the factory ceiling adjusted the steel sheet's position according to the angles input into the system. After about 5 seconds, the machine picked up the steel sheet again, moved sideways, and gently placed it on top of other stacked sheets.

The core wire automatic stacking equipment is transporting electrical steel sheets. [Image source=HD Hyundai Electric]

The machine repeated this task. I watched it in awe. Yang Jae-cheol, Executive Director in charge of transformers at HD Hyundai Electric, said, “This is the first step in the transformer production process, making the iron core structure. Previously, 5 to 6 people performed this task, but now this machine replaces them. Currently, only 1 to 2 workers are involved.” The workers’ main job has become checking whether the equipment operates normally and if there are any errors.

When 5,000 steel sheets are stacked up to 1 meter (height varies by product), one iron core structure is completed. The iron core acts as a kind of iron pillar, serving as the electrical path inside the transformer. The iron core being made that day was for a 3-phase transformer to be supplied to the UK’s state-owned power company, National Grid, consisting of seven iron core structures connected in a ‘日’ shape. To make one transformer, a total of 35,000 electrical steel sheets must be stacked.

Gang Jin-ho, head of the transformer production department, said, “This task, which would take a person a week working day and night, has been reduced to about 4 days through the iron core automatic stacking equipment. Night shifts are now possible, improving production efficiency.”

The image shows a person performing stacking work before the introduction of the automatic iron core stacking equipment. [Image source=HD Hyundai Electric]

The iron core stacking work, which must be done within a tolerance of 2 mm, is extremely delicate, like threading a needle. Tolerance refers to the allowable range of difference between the specified dimensions on the blueprint and the actual measurements. Simply put, it is the gap between the steel sheets where they touch. Executive Director Yang said, “Using the world’s only iron core automatic stacking equipment, we manage tolerances better than humans, within 1 mm.” HD Hyundai Electric developed this equipment as the world’s first in collaboration with a domestic robotics company.

The coil wound with copper wire of 99.9999% purity around the iron core is called the central core. Previously, winding was done one iron core at a time, but now 2 to 5 cores are assembled simultaneously using a crane. After connecting cables and insulation to the central core, it is dried in a vacuum dryer and inserted into the outer casing (tank). After attaching heat sinks and completing tests in the testing room, all processes are finished.

When moving transformers, equipment called an air cushion is used. On that day, a 250-ton transformer measuring 12 meters long and 5.5 meters high was supported by the air cushion. One air cushion can lift up to 400 tons.

HD Hyundai Electric Transformer Smart Factory Kiosk Operation Scene
Photo by HD Hyundai Electric

The factory interior is clean. Fine dust particles smaller than 0.5 μm are controlled to not exceed 100,000 particles. It complies with the cleanroom regulations of the U.S. federal administration. Executive Director Yang said, “It’s not comparable to a semiconductor factory, but we strictly manage to prevent foreign substances from entering. Foreign customers say it’s cleaner than their own homes.” Additionally, kiosks, tablet PCs, and barcodes installed throughout the production plant allow all workers to check the latest 3D (three-dimensional) blueprints uniformly and control the equipment.

This place, filled with advanced equipment, is a smart factory newly built in 2020 after demolishing one of the four existing factories in 2018. On that day, HD Hyundai Electric revealed the factory interior to the media for the first time in 46 years since the company’s establishment in 1977. Kim Young-gi, Vice President of HD Hyundai Electric, said, “Despite the market rapidly declining in 2018-2019 and facing considerable difficulties, we invested 80 billion won to prepare this smart factory. We believed that strengthening quality was the only way to survive and not be eliminated in the market.”

An air cushion carrying a transformer moving in the HD Hyundai Electric transformer smart factory
[Photo by HD Hyundai Electric]

The factory is at full capacity. Executive Director Yang said, “It takes about 10 months from order to release, but recently the factory is fully booked, and the waiting time has extended to about 14 months.” The final assembly area was lined with transformers for export to the U.S., UK, Canada, Saudi Arabia, and for the offshore wind power complex in Jeonnam. Including the other three factories (300kV, 400kV, 800kV), about 100 transformers are being produced simultaneously. Vice President Kim said, “We are building an iron core factory next to this smart factory, scheduled for completion in October next year, which will allow us to secure more assembly space.”

The accumulated operating profit for the third quarter this year was 190.5 billion won, already surpassing the entire previous year’s operating profit. The order backlog as of the third quarter this year was 5.1571 trillion won, doubling in 2 years and 9 months. They have filled orders with delivery times of 3 to 4 years. This year alone, they secured orders worth 222.6 billion won for transformers for Neom City in Saudi Arabia (including the Saudi Electricity Company), 213 billion won from U.S. Excel Energy, and 79 billion won from Danish offshore wind company Semco Maritime. With these consecutive good news, HD Hyundai Electric’s stock price has been hitting record highs daily.

HD Hyundai Electric Transformer Smart Factory View
[Photo by HD Hyundai Electric]

HD Hyundai Electric was established as an independent corporation in 2017 after the spin-off of the electrical and electronic systems division of HD Hyundai Heavy Industries. It operates in power equipment, distribution equipment, and rotating machinery businesses. Since CEO Jo Seok took office in 2019, he boldly abandoned the previous sales-driven growth strategy and focused on selective order acquisition. Despite the market downturn, proactive investments were made. In 2019, the transformer production plant in Alabama, USA, was expanded, and in 2020, the Ulsan smart factory was established along with the founding of a sales corporation in Atlanta, USA.

The profitability-focused order strategy gained momentum as the global carbon neutrality trend strengthened. Renewable energy investments increased mainly in North America and Europe, expanding market demand, and large-scale projects in the Middle East became active.

Jo Seok, President and CEO of HD Hyundai Electric
[Photo by HD Hyundai Electric]

Since this year, CEO Jo has been visiting the production plant once a month to personally oversee production and quality management and encourage employees. He told reporters that day, “Beyond the U.S. and Middle Eastern markets, we will strive to grow into a ‘100-year company’ by achieving results in newly entered industrial sectors.” Offshore wind power, energy storage systems (ESS), and industrial complex energy management systems (CEMS) are being promoted as new businesses.

HD Hyundai Electric expects the transformer market boom to continue through the year after next. Vice President Kim expressed confidence, saying, “Some overseas customers have proposed long-term supply contracts until 2033. We believe we can achieve 3 trillion won in sales next year and 5 trillion won by 2030.”

HD Hyundai Electric Transformer Smart Factory Core Automatic Stacking Equipment
[Photo by HD Hyundai Electric]

Ulsan HD Hyundai Heavy Industries shipyard HD Hyundai Electric workplace view
[Photo by HD Hyundai Electric]

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