Hyosung Heavy Industries (298040) said Tuesday it had signed a long-term supply contract for power equipment, including ultra-high-voltage transformers and reactors, with AusNet, the sole transmission grid operator in the Australian state of Victoria, on Monday. The total order is worth 310 billion won.
Under the contract, Hyosung Heavy Industries will exclusively supply power equipment to Victoria's transmission grid over the next five years.
In March, Hyosung Heavy Industries had won a 142.5 billion won energy storage system (ESS) project in the Australian state of Queensland.
Hyosung Heavy Industries has held the No. 1 market share in ultra-high-voltage transformers in Australia's transmission market for 10 years through customer-tailored strategies and its local subsidiary.
Hyosung Heavy Industries said the achievement is the fruit of the global partnership management that Chairman Cho Hyun-joon has emphasized. Cho judged that Australia is a market rapidly pursuing energy transition based on abundant renewable energy resources such as solar, wind, and hydropower.
"Australia is a strategic market where demand for long-distance transmission grids and power system stabilization technology continues to expand, based on abundant renewable energy resources and a vast territory," Cho said. "We must become a partner that can provide solutions for Australia's energy policy, not simply a power equipment supplier."
Australia is carrying out a 20 trillion won "national grid overhaul" project to resolve grid instability and expand large-scale long-distance transmission networks. Accordingly, it is making intensive investments in interstate transmission grid connection projects linking Victoria, New South Wales, and others, as well as in building power infrastructure within key renewable energy zones in each region.
Based on this, Hyosung Heavy Industries expressed hope that it could expand cooperation beyond this ultra-high-voltage transformer supply to next-generation grid solutions that minimize power loss in long-distance environments, such as static synchronous compensators (STATCOM) and high-voltage direct current (HVDC) transmission.
"Australia is one of the world's most dynamic markets in terms of the speed and scale of energy transition," Cho said. "We will continue to expand cooperation to next-generation grid solutions and become a partner that leads Australia's energy transition together."
Meanwhile, Hyosung Heavy Industries won 787 billion won worth of power equipment orders in the North American market early this year. It also expected cumulative orders in the North American market to reach 2.5 trillion won in the first half of this year.
