Companies Eye Mid- to Long-Term Business and U.S. Market Entry... Challenges Include Partnerships and Supply Chains

HD Hyundai Electric Leads in Ultra-High Voltage Transformers
LS Electric Dominates in Low and Medium Voltage Switchgears
Equipment Selection Key for Nuclear and Gas Power Plants
Posco International Eyes Alaska LNG Project

As South Korea and the United States have agreed to give priority consideration to domestic companies participating in U.S. investment projects, attention is now focused on the specific modes of participation and potential contract sizes. Since this presents a mid- to long-term opportunity for large-scale business and a solid gateway into the U.S. market, domestic companies are closely monitoring the development of these projects. However, there are numerous challenges to address, ranging from securing partnerships with local operators, meeting local procurement requirements, specifying the standards of equipment, and finalizing other supply specifications.

According to industry sources on October 1, the U.S. investment projects consist of the 'Texas gas-fired power plant construction,' the 'construction of eight large nuclear power plants,' and the 'Alaska LNG (liquefied natural gas) development.' In the Texas gas power plant project, the Korean government has secured the right to recommend domestic vendors, suppliers, and project managers (PM), raising expectations that Korea's power equipment suppliers will have opportunities to participate and win contracts.

LS Electric Utah Plant Expansion Perspective. LS Electric

To supply a total capacity of 6.5GW to data centers and the power grid, ultra-high voltage transformers and power distribution solutions are essential. HD Hyundai Electric maintained the number one market share in the U.S. market for ultra-high voltage transformers over 100 megavolt-amperes (MVA), recording a 17.2% share in 2024 and a 25.7% share in 2025 for two consecutive years. The project leader, NextEra Energy, is a longstanding core client of HD Hyundai Electric, which could serve as an advantage in future decisions regarding key equipment suppliers.

Furthermore, as the plant’s electricity is supplied directly to data centers, there will be high demand for low and medium voltage switchgears tasked with precise power distribution—a product line in which LS Electric has a strong competitive advantage. LS Electric is currently expanding its plant in Utah, which produces power distribution solutions for North America, investing a total of 250 billion won with a target of starting operations in 2027.

A 380MW-class gas turbine product developed and manufactured by Doosan Enerbility. Doosan Enerbility

The nuclear and Alaska projects are attracting interest from the heavy industry and steel sectors. Reportedly, South Korea and the United States have agreed that priority will be given to domestic companies for participation in the nuclear project and that Korean government recommendations will be considered.

For the construction of eight nuclear power plants, the types of reactors adopted, the business model, and, for the gas power plant, the range of participation will vary depending on the facility choices of the power operator. Although American firms such as GE have dominance in the gas turbine market, it remains a critical issue for Korean companies to secure an actual supply scope. A nuclear industry insider stated, "Even if investment is made, which products are selected ultimately depends on the power operators' decisions. It is important for domestic companies to maximize their participation, expanding their supply scope as much as possible to ensure positive ripple effects throughout the entire industrial ecosystem."

The Alaska project, which drew the most interest at the time of the investment announcement, has seen subtle differences emerge between the two governments, leaving the participation of domestic companies uncertain. However, considering opportunities such as Korean LNG demand and steel supply, domestic companies are still considered to have a high potential for participation.

Currently, Posco International is the only domestic company reviewing participation in the Alaska project. In September 2025, Posco International signed a strategic partnership with Glenfarne Alaska LNG, a subsidiary of Glenfarne Group, the operator of the Alaska project. The two companies have discussed cooperation in LNG purchasing, steel supply, and project investment.

However, the specific scale of participation has not yet been finalized. In January, Glenfarne announced preliminary selection results for pipeline construction and steel pipe suppliers, signing conditional agreements for steel pipe supply with Corinth of Greece and Europipe of Germany. These companies have secured supply contracts amounting to two-thirds of the total, estimated at 700,000 tons. Observers believe that should Korean steelmakers participate, they could supply a portion of the remaining order volume.

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