Elpowertech signs contract with LA Power Authority to supply transformers > Press release

Overview of Elpowertech located in the Hwaseong Bio Valley Complex in Gyeonggi Province

Written: November 21, 2019 (Thursday)

Small and medium-sized enterprises export transformers to the world's largest market, the US, a 'great feat'

Elpowertech signs a contract to supply oil-immersed transformers with the LA Power Authority

A domestic small and medium-sized transformer company has succeeded in large-scale exports to the US, one of the world's largest power equipment markets. Exports to the US have been considered the exclusive domain of large corporations, but a small and medium-sized company has secured a supply contract, providing new possibilities to the heavy electric industry struggling with a domestic slump.

Elpowertech (CEO Choi Seong-kyu), a heavy electric equipment manufacturing company located in Hwaseong, Gyeonggi Province, recently signed a contract to supply large-capacity oil-immersed transformers ordered by the LA Power Authority. A total of 45 power transformers, including 22 34.4kV 7.5MVA units and 23 34.4kV 500kVA units, are worth 2.1 million dollars (approximately 2.5 billion won). According to the Goulden Report, a global power market research institute in the UK, the US (12.71%) is the second largest market in the transformer sector as of 2016, following China (34.57%). The fact that domestic small and medium-sized enterprises’ transformers have made a soft landing in the US, one of the world’s largest markets, means that they have secured international competitiveness in terms of price and quality. Choi Seong-gyu, CEO of Elpowertech, said, “We have been preparing and obtaining UL certification for dry and oil-immersed transformers for a long time in order to enter the North American market,” and “After much effort, we have signed an export contract with the LA Power Authority, so we will begin to enter the local market in earnest.” Elpowertech has set a goal of exporting 10 to 15 million dollars next year, taking advantage of its entry into the US market. This figure is 30% higher than this year’s export volume of $7-8 million. CEO Choi said, “As we have made our first start, we plan to actively strengthen our sales network targeting the power authority markets of the 50 states in the U.S. going forward,” and “We will prove that domestically produced transformers are also internationally competitive.”

The North American power equipment market has been one of the main markets for large companies such as Hyundai Electric and Hyosung Heavy Industries, but the entry of small and medium-sized companies has been relatively weak. With Elpowertech’s large-scale export contract as a catalyst, other small and medium-sized companies are also showing interest in the North American market. It is also expected that overseas market sales will be opened up through friendly competition among small and medium-sized companies.

CEO Choi emphasized, “We will focus all our efforts on entering global markets such as the U.S., Japan, and the Philippines starting next year, as we have completed internal work such as relocating factories and facilities and improving our financial structure this year,” and “We will definitely receive the $10 million export tower next year.” Elpowertech, which produces transformers and switches, relocated its headquarters and factory to a 16,000㎡ (approximately 5,000 pyeong) site in the Hwaseong Biovalley Industrial Complex in Gyeonggi Province at the end of May, investing a total of KRW 20 billion. Production capacity has expanded by approximately three times compared to before.

In addition to transformers and switches, it plans to produce new items for market diversification, such as eco-load switches, transformers for OLED inverters, power supplies for semiconductors, Scott transformers, and solar power transformers. It also expanded its workforce by 20-30% and acquired new licenses for electrical engineering and information and communications engineering to enter the new energy industry. CEO Choi said, “We have focused on exports to Japan, Southeast Asia, and the Middle East so far, but in the future, the North American market, where demand for replacing old transformers is expected, will become our new growth engine.”

Reporter Song Se-jun 21ssj@electimes.com

[This post was copied from the press release (Korea) on 2022-08-25 11:21:28 by the top administrator]