Hitachi Industrial Equipment Systems Co., Ltd. and Mitsubishi Electric Corporation have struck a deal on the transfer of the distribution transformer. Particularly, Mitsubishi Electric’s Nagoya Works, which manufactures factory automation equipment, will transfer its distribution transformer business to Hitachi Industrial Equipment Systems.

The distribution transformer business involves the development, design, manufacturing, sales, and maintenance. Accordingly, the transfer will start in October and will continue gradually until full completion by April 2026.

However, the Business Transfer does not include the transformers manufactured at Mitsubishi Electric’s Transmission & Distribution Systems Center, Ako Factory. Through this Business Transfer, Hitachi Industrial Equipment Systems will expand its product lineup of highly energy-efficient and eco-friendly transformers. At the same time, accelerates the growth of grid-edge solutionscentered on power distribution systems, mainly in the domestic market.

Furthermore, the company aims to contribute to the sustainable evolution of Japan’s power transmission and distribution network. Particularly, by utilizing Hitachi Group’s wider capabilities in IT, OT, and products. Mitsubishi Electric will focus on expanding its FA systems business based on its portfolio strategy of concentrating investments in priority growth businesses.

Distribution transformers serve the function of lowering the voltage of high-voltage electricity generated by power plants so that the power can be used to meet the needs of the users. Their installation is at relay points of the power grid, such as substations, public facilities, business facilities, and commercial facilities.

Mega Trends Stir Demand

Demand for power distribution transformers will likely grow further globally over the long term. Particularly, the demand will come from mega trends happening in and around the industry. Among them are, the spread of renewable energy, the expansion of data centers, and the growth of semiconductor manufacturing with the expansion of generative AI and digital transformation.

In Japan, the Top Runner Program under the Energy Conservation Law sets targets for

improving energy consumption efficiency. Moreover, distribution transformers used in factories and buildings will likely achieve improvement by 11.4% in 2027 compared to 2020. The improvement of environmental performance is becoming indispensable, and in 2026. Thus, the market expand further by more than 10 percent from the 2022 level.*2

For that reason, Hitachi Group is expanding its transformer business globally as one of the key products for achieving carbon neutrality.

As a leading manufacturer of distribution transformers in Japan,

Hitachi Industrial Equipment Systems provides products that achieve superior energy efficiency by using “amorphous metal”. Specifically, it comes with low power loss in the iron core. Also, products that achieve high environmental performance and safety by using vegetable oil (ester oil).

Furthermore, as part of the Hitachi Group, the global leader in transformers, Hitachi Energy, is offering liquid-filled and dry-type transformers, as well as services for complete life-cycle support to utilities, industrial, and transport sectors.