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Hyosung Group Drives Growth with Power Equipment Expansion, Bio-Based Textiles, and AI Data Centers
Hyosung Group, a South Korean conglomerate that began as a textile and heavy‑industry player, reported a robust first‑half performance in 2026. The surge was powered by a flood of new power‑equipment orders in North America and a rebound in its textiles and chemicals divisions, underscoring the group’s strategy to deepen its power‑solutions portfolio, expand into bio‑based materials, and launch an AI data‑center business.
Hyosung Heavy Industries recorded sales of KRW 3.0451 trillion and an operating profit of KRW 416.6 billion during the first six months. New orders climbed to KRW 7.4981 trillion, nearly matching the previous year’s annual total. Management attributes the uptick to a robust local production and sales base in the United States and a customer‑response system that meets the growing demand for power‑equipment.
The group’s textile arm, Hyosung TNC, achieved sales of KRW 4.5104 trillion and an operating profit of KRW 275 billion. Second‑quarter operating profit rose to KRW 188.8 billion, beating market expectations. The company leveraged its global production network to adapt to shifting regional conditions, benefiting from a recovery in spandex demand.
Hyosung Chemical posted first‑half sales of KRW 1.4583 trillion and an operating profit of KRW 171 billion. Its turnaround in the second quarter followed a first‑quarter improvement, driven by a decline in global polypropylene supply, higher prices amid Middle‑East uncertainties, production stabilization, cost reductions, and expanded sales in Europe and Japan.
The power‑equipment business is moving from supplying individual components to offering integrated solutions. Hyosung Heavy Industries is expanding its Memphis, Tennessee plant to boost ultra‑high‑voltage transformer capacity by more than 50 % by 2028. The company also announced a joint venture with U.S. firm Quanta Services to produce ultra‑high‑voltage circuit breakers, making Hyosung the first Korean manufacturer to produce both transformers and circuit breakers in the United States.
Chairman Hyun‑Joon Cho said the company aims to become a global provider of integrated power solutions that support stable power‑grid operation. He highlighted the strategic importance of power infrastructure for national security, especially as AI and data‑center demand grows.
Hyosung TNC is expanding into bio‑and functional materials, building on its spandex expertise. The company is producing sugarcane‑based bio‑1,4‑butanediol (bio‑BDO) in Vietnam using Genomatica’s GENO™ technology. The bio‑BDO is chemically identical to conventional BDO and is used to manufacture poly‑trimethylene glycol (PTMG) and bio‑spandex, part of the group’s effort to meet global demand for low‑carbon materials.
In line with the AI era, Hyun‑Joon Cho has positioned data as “the oil of the 21st century” and is directing the expansion of AI data centers. Hyosung Group has launched a hyperscale AI data center in Seoul—a 30‑MW facility that integrates power infrastructure, energy solutions, construction, and cloud operations. The data center is intended to create a new growth engine by applying the group’s power‑technology expertise to AI infrastructure.
The group is also investing in talent development. It has begun recruiting humanities majors to serve overseas operations, aiming to combine technical capabilities with an understanding of local customers and markets. The initiative reflects Cho’s view that reading market change requires humanities insight.
Hyosung’s recent performance demonstrates a coordinated effort to strengthen existing businesses while pursuing new growth areas. The company’s expansion in North America, its bio‑based textile production, and its entry into AI data‑center services are all part of a broader strategy to build a diversified, technology‑driven portfolio.
The group’s next steps include completing the Memphis plant expansion, scaling up the Vietnam bio‑BDO facility, and further developing the Seoul data center. No additional regulatory actions or court proceedings have been reported. The company remains focused on delivering sustainable growth through technology and market‑aligned initiatives.
Hyosung Heavy Industries recorded sales of KRW 3.0451 trillion and an operating profit of KRW 416.6 billion during the first six months. New orders climbed to KRW 7.4981 trillion, nearly matching the previous year’s annual total. Management attributes the uptick to a robust local production and sales base in the United States and a customer‑response system that meets the growing demand for power‑equipment.
The group’s textile arm, Hyosung TNC, achieved sales of KRW 4.5104 trillion and an operating profit of KRW 275 billion. Second‑quarter operating profit rose to KRW 188.8 billion, beating market expectations. The company leveraged its global production network to adapt to shifting regional conditions, benefiting from a recovery in spandex demand.
Hyosung Chemical posted first‑half sales of KRW 1.4583 trillion and an operating profit of KRW 171 billion. Its turnaround in the second quarter followed a first‑quarter improvement, driven by a decline in global polypropylene supply, higher prices amid Middle‑East uncertainties, production stabilization, cost reductions, and expanded sales in Europe and Japan.
The power‑equipment business is moving from supplying individual components to offering integrated solutions. Hyosung Heavy Industries is expanding its Memphis, Tennessee plant to boost ultra‑high‑voltage transformer capacity by more than 50 % by 2028. The company also announced a joint venture with U.S. firm Quanta Services to produce ultra‑high‑voltage circuit breakers, making Hyosung the first Korean manufacturer to produce both transformers and circuit breakers in the United States.
Chairman Hyun‑Joon Cho said the company aims to become a global provider of integrated power solutions that support stable power‑grid operation. He highlighted the strategic importance of power infrastructure for national security, especially as AI and data‑center demand grows.
Hyosung TNC is expanding into bio‑and functional materials, building on its spandex expertise. The company is producing sugarcane‑based bio‑1,4‑butanediol (bio‑BDO) in Vietnam using Genomatica’s GENO™ technology. The bio‑BDO is chemically identical to conventional BDO and is used to manufacture poly‑trimethylene glycol (PTMG) and bio‑spandex, part of the group’s effort to meet global demand for low‑carbon materials.
In line with the AI era, Hyun‑Joon Cho has positioned data as “the oil of the 21st century” and is directing the expansion of AI data centers. Hyosung Group has launched a hyperscale AI data center in Seoul—a 30‑MW facility that integrates power infrastructure, energy solutions, construction, and cloud operations. The data center is intended to create a new growth engine by applying the group’s power‑technology expertise to AI infrastructure.
The group is also investing in talent development. It has begun recruiting humanities majors to serve overseas operations, aiming to combine technical capabilities with an understanding of local customers and markets. The initiative reflects Cho’s view that reading market change requires humanities insight.
Hyosung’s recent performance demonstrates a coordinated effort to strengthen existing businesses while pursuing new growth areas. The company’s expansion in North America, its bio‑based textile production, and its entry into AI data‑center services are all part of a broader strategy to build a diversified, technology‑driven portfolio.
The group’s next steps include completing the Memphis plant expansion, scaling up the Vietnam bio‑BDO facility, and further developing the Seoul data center. No additional regulatory actions or court proceedings have been reported. The company remains focused on delivering sustainable growth through technology and market‑aligned initiatives.
