Hyundai Translead to build first US trailer plants as duty investigations move forward

The expansion comes as trailer production declined in 2025 and as trade actions tied to imports and tariff classifications continue to move through federal review.

Expansion adds domestic capacity

Hyundai Translead said the two Illinois sites will span about 52 acres along the Des Plaines River. One site is a former Caterpillar heavy equipment property. The other is located at the previous Lion Electric facility.

The company said the new facilities will support current operations and allow for additional product lines. It also stated the sites are intended to reduce lead times and landed costs while supporting distribution through its dealer network.

Trailer output declines in 2025

Industry data shows a broad reduction in trailer production across North America. According to Trailer Body Builders’ February issue, total output among reporting manufacturers fell to 200,485 units in 2025 from 245,3448 units in 2024, a decrease of about 18%.

Hyundai Translead remained the largest producer, with 39,887 units in 2025, down from 56,088 units in 2024. Great Dane reported 24,525 units, compared with 36,000 a year earlier, while Wabash National Corp. reported 22,770 units, down from 32,100.

At the same time, some producers reported higher volumes. Stoughton Trailers LLC increased production to 15,600 units from 15,000.

Utility did not report a 2025 production total, citing the ongoing trade investigation. An estimated figure was included to maintain a comparable industry total.

ITC ruling advances trade case

The expansion follows a US International Trade Commission preliminary determination that found reasonable indication of material injury tied to imports of van-type trailers and subassemblies from Canada, Mexico and China.

The petition in that case was filed by the American Trailer Manufacturers Coalition, whose members include Great Dane, Stoughton and Wabash.

As a result, the antidumping and countervailing duty investigation will proceed. Final determinations could lead to duties on imports, depending on the outcome.

Section 232 dispute involves overlapping group

The current trade environment also reflects separate requests to include certain trailer products under Section 232 tariffs on steel and aluminum derivative products.

That request was filed by an ad hoc coalition of dry-van and refrigerated trailer producers composed of Grean Dane, Stoughton, Wabash and Strick Trailers.

In August, the Department of Commerce approved the inclusion of HTSUS classification 8716.39.0040, covering van-type trailers, under Section 232 derivative measures. The aluminum content in those products is subject to a 50% duty rate. A related classification covering certain trailer parts, HTSUS 8716.90.5060, was not included as it was already subject to the Section 232 Automobile Tariff and/or the Section 232 Trucks Investigation.

Hyundai Translead, which is based in San Diego and is a subsidiary of Hyundai Motor Company, manufactures its North American trailer output in Mexico. Its products fall within the scope of the classification subject to the tariff.

Earlier in the process, Hyundai Translead, through counsel, opposed the request. The company stated import volumes follow cyclical patterns rather than a sustained increase. It also said imports, primarily from Mexico, are required to meet domestic demand for dry-van and refrigerated trailers used in freight distribution.

CEO statement addresses investment trends

A statement from CEO Sean L. Kenney, submitted in response to the Section 232 derivative petition as part of the public comment record, cited differences in capital investment across trailer manufacturers over time.

Kenney stated 2023 represented a peak period in a cyclical market and some competitors did not expand capacity to the same extent. He also said Hyundai Translead increased investment during prior cycles, which affected its current production position.

The filing also stated Hyundai Translead’s imports comply with the US-Mexico-Canada Agreements (USMCA) and a portion of components used in production originate in the United States.

Relevance to aluminum

Truck trailer manufacturing remains a key end market for aluminum extrusions and flat-rolled products.

Extrusions account for a large share of aluminum use in trailer construction, while flat-rolled products are used in panels and roofing.

Common alloys include 5052, 3003 and 3105 along with 6XXX series material in structural applications.

Going forward, the outcome of ongoing trade cases and trends in trailer production are likely to influence production decisions and regional capacity allocation.

The Illinois investment adds domestic production capacity for Hyundai Translead, the largest truck trailer manufacturer in North America by output.