Hyundai Heavy Industries, the world’s largest shipbuilder and a leading electro electric systems manufacturer, today announced the completion of the Hyundai Electrosystems gas insulated switchgear plant (GIS) in Vladivostok, Russia on January 25.

The completion ceremony for the USD 50 million plant, covering 100,000 m2, was attended by Mr. Igor Shuvalov, Russian first deputy prime minister; Mr. Oleg Budargin, chairman of the Management Board of JSC “FGC UES”; Mr. Lee Jai-seong, president and CEO of Hyundai Heavy; and Mr. Kim Hwan-goo, COO of Hyundai Heavy’s Electro Electric Systems Division.

Hyundai Heavy is the first foreign company to build a GIS plant in Russia. Hyundai Electrosystems has a production capacity of 350 units a year, ranging from 110 kV to 500 kV. The company plans to expand its annual capacity to 500 units by 2015 in view of market conditions.

HHI drafted establishing Hyundai Electrosystems as part of a long-term strategy to gain a foothold in a Russian GIS market that is expected to see annual growth of 10%, reaching a market value of about USD 700 million by 2017, supported by the Russian government’s power grids modernization policy.

In close cooperation with FGC UES for the upgrade of Russia’s power grids, Hyundai Heavy has been nurturing talented engineers by opening the new electrical engineering department in Energeticheskiy Kollege, modernizing the college building and teaching equipment, and preferentially hiring graduates from the college since 2011.

In his congratulatory remarks, Mr. Lee Jai-seong said, “Hyundai Heavy’s advanced GIS technology, the Russian government’s strong support, and talented engineers from Primorsky Krai are the three main pillars of Hyundai Electrosystems as a model case of successful foreign investment in Russia. We believe the GIS plant will serve as a catalyst for the development of the Russian Far East region.”