A South Korean manufacturer of electric power equipment plans to set up its first U.S. production operations in Memphis, Tennessee, where the company aims to invest $86.9 million and create 410 jobs over seven years.

Gov. Bill Lee and his economic development team announced Friday that Hyosung Heavy Industries will update an existing Memphis facility to increase production capacity and meet growing demand.

At the Memphis facility, Hyosung Heavy Industries hopes to begin producing state-of-the-art power transformers by the first half of next year.

The Seoul, South Korea-based company's products include transformers, switchgear, flexible AC transmission systems and energy storage solutions.

The company exports to customers worldwide and has been a leading manufacturers of power transformers for five decades.