Montgomery landed a massive industrial win Friday as Hyundai Power Transformers USA announced a $200 million expansion of its manufacturing operation that is expected to create 200 new jobs and increase domestic production of large power transformers essential to the nation’s electric grid.

The new facility, scheduled to open in mid-2027, will enable HD-HPT to manufacture even larger transformer units in the United States, further strengthening national infrastructure resilience and energy security.

With this expansion, HD-HPT’s total investment in Montgomery will reach $277 million, supporting 600 jobs since the company first established operations in the Capital Region in 2011, according to the company.

“This expansion reflects our long-term confidence in Montgomery and the State of Alabama,” said Jinho Kang, President of HD Hyundai Power Transformers USA.

“When we made the decision in 2011 to locate HD-HPT in Montgomery, we saw a community committed to partnership, workforce excellence, and infrastructure support. The collaboration between state and local leaders, economic development partners, and workforce training organizations made this growth possible — and continues to position us for long-term success. The Montgomery Regional Chamber served as a strong, single point of contact throughout this process, helping align resources and accelerate solutions with our local and state partners. We are proud to continue expanding in Montgomery and remain deeply committed to this community’s future.”

State leaders emphasized the broader significance of the project for Alabama’s advanced manufacturing and energy infrastructure sectors.

“HD-HPT’s expansion in Montgomery strengthens Alabama’s position as a national leader in advanced manufacturing and critical infrastructure production,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “By increasing domestic production capacity, this investment enhances supply chain resilience while reinforcing Alabama’s leadership in securing the nation’s energy future.”

Approximately 70% of the nation’s large power transformers are currently in need of replacement.

HD-HPT now supplies more than 15 percent of U.S. large core-type transformers — a significant contribution to strengthening and modernizing the nation’s power grid. As a Homeland Security Essential employer, HD-HPT’s work is directly tied to national infrastructure protection and grid security.

The company also highlighted the importance of logistics and rail infrastructure in supporting its operations.

“CSX has been a long‑standing partner to HD Hyundai Power Transformers and the Montgomery community,” said Christina Bottomley, Vice President of Business Development and Real Estate at CSX. “As this project moves forward, our team is working closely with CSX’s Clearance Bureau, which specializes in the logistics of complex, dimensional moves, to help HD-HPT further strengthen its supply chain, support regional growth, and advance the reliability of the nation’s power grid.”

HPT credited the coordinated support of the Alabama Department of Commerce, the City of Montgomery, the Montgomery County Commission, the Montgomery Regional Chamber, AIDT, Alabama Technology Network (ATN), BCA, and numerous regional partners for helping launch and grow the company’s operations.

AIDT has been instrumental in developing and sustaining HPT’s five-year associate apprenticeship training program, ensuring a highly skilled workforce pipeline to support the company’s advanced manufacturing processes.

“This expansion positions Montgomery at the center of strengthening America’s energy infrastructure,” said Anna Buckalew, President & CEO of Montgomery Regional Chamber.

“By growing domestic transformer production, HD-HPT is advancing national resilience while contributing to sustained economic growth in our region.”

This investment adds to a sustained period of employer reinvestment across the Capital Region, reinforcing Montgomery’s competitive position in advanced manufacturing. The expansion further positions Montgomery as a key hub in America’s critical infrastructure supply chain while reinforcing the region’s competitiveness in advanced manufacturing and energy-related industries.