AusNet has signed a landmark five-year agreement with global manufacturer Hyosung Heavy Industries to secure the supply of critical transmission transformers that will strengthen Victoria’s energy network and support the transition to a cleaner energy future.
The agreement, valued at approximately $300 million, will provide up to 45 large power transformers, helping AusNet meet rising demand for electricity while replacing ageing infrastructure across the state.
Transformers are one of the most critical long-lead components required to build and maintain transmission infrastructure. However, global demand for transformers is currently exceeding manufacturing capacity, driving lead times to over two and a half years and increasing costs across the sector.
AusNet Chief Executive Officer, David Smales, said this proactive approach to managing global supply constraints was essential to delivering Victoria’s future energy system. It guarantees AusNet access to essential equipment that will improve reliability, reduce supply chain risk and help to keep costs down for customers.
“Transformers are a critical enabler of the energy transition. This agreement locks in access to globally scarce equipment, giving us greater certainty to deliver critical projects,” Mr Smales said.
“Around the world, energy companies are competing for a limited pool of equipment. By acting early and partnering with a trusted supplier like Hyosung, we can secure the infrastructure we need while managing cost pressures for Victorian households and businesses.”
Chairman of Hyosung Group Hyun-joon Cho said the partnership reflects a shared commitment to supporting reliable and sustainable energy systems.
“We are proud to partner with AusNet to deliver critical infrastructure that will support Victoria’s growing energy needs while keeping costs as low as possible for customers,” Mr Cho said.
The contract was signed at a formal ceremony in Seoul, Korea and was attended by members from both AusNet’s executive team and Hyosung leadership. Also present was the Australian Ambassador to the Republic of Korea, H.E. Jeff Robinson and representatives from the Australian Embassy, Austrade, the Victorian Government and the Australian Chamber of Commerce in Korea.
Photo (L-R): AusNet CEO David Smales, Australian Ambassador to Korea Jeff Robinson, and Hyosung Heavy Industries CEO Tae-hee Woo at the Korean power equipment maker’s headquarters in Seoul, Korea.