Hyosung Heavy Industries is expected to take over the Mitsubishi Electric factory, officials announced during a press conference Friday.
The Korean company manufactures industrial transformers. The Mitsubishi Electric plant manufactured another type of transformers but Sunghoo Ahn, Senior Vice President of Hyosung, said the product his company makes has a wider variety of uses and is more desirable to buyers. They make up about 95% of the industry demand, Ahn said Friday.
That makes him believe Hyosung has a chance to succeed in Memphis where Mitsubishi Electric could not.
“This announcement and transaction is important to us because Hyosung has been operating in the United States for 20 years and this will be our first production facility in the United States,” Ahn said.
Hyosung expects to invest $86.9 million and create 410 jobs in Shelby County over the next seven years.
Hyosung is under contract to buy the Mitsubishi Electric at Rivergate Industrial Park. Mitsubishi Electric announced last month it was negotiating the sale of its Memphis plant.
The sale of the factory is expected to be finalized in February and construction to retrofit the factory to make Hyosung’s transformers is expected to begin immediately with hiring to follow. Hyosung spokesperson Valerie Morris said 98 hires are expected in the first year.
“There could have been a much different outcome for this piece of property, but that’s the Memphis story,” Memphis Mayor Jim Strickland said. He went on to say that Memphis always finds a way to bring economic develop and that “Memphis is open for business.”
This story will be updated.
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