Hitachi Energy has revealed investments of over US$1.5 billion to ramp up its global transformer manufacturing capacity. Consequently, this will help the company to keep pace with the growing demand and support the long-term plans.

The investments will gradually expand the company’s global transformer capacity by 2027 and are in addition to the $3 billion already announced to progress on the electrification of the energy system driven by the energy transition.

“The demand for transformers and electrical equipment has grown at an unprecedented scale. We are investing to address our customers’ mid- and long-term needs,” said Bruno Melles, Managing Director of the Transformers Business at Hitachi Energy. Furthermore, Melles said they are developing global footprint and capacity and progressing in digitalization and technology. Particularly, to deliver even more sustainable and reliable solutions

Series of Investments, Capacity Buildup

In addition, the company is also announcing an investment of around US$180 million in a new state-of-the-art transformer factory in the Vaasa region, Finland. This top-notch 30,000-square-meter campus will be a testament to Hitachi Energy’s dedication to innovation, quality, and environmental stewardship.

The investments complement Hitachi Energy’s broader growth efforts, which include the recently announced larger than $30 million expansion in Bad Honnef, Germany. Moreover, additional investments will follow in Europe, the Americas, and Asia. Thus, meeting the growing demand for power and distribution transformers.

Hitachi Energy’s transformer facility expansions include the ongoing project in South Boston, Virginia, US. Likewise, in other recently completed projects at Jefferson City, Missouri, US, and Dos Quebradas, Colombia.

In addition, the company has inaugurated new cutting-edge factories in Chongqing, China, and Hanoi, Vietnam, together with a new transformer service center in Welshpool, Australia.

“Our global investments, including the new transformer campus in Finland, underline our commitment to co-create with our utility and industry customers and partners the path to accelerate the energy transition. By strategically leveraging our global footprint, technology, and the expertise of our teams, we are not only poised to meet the global demand for sustainable energy solutions but also to drive the innovation necessary for a carbon-neutral future,” Melles added.

Critical in Decarbonization

Transformers play a key role across the power value chain, enabling efficient transmission and distribution of electricity. They are a key component for applications such as integrating renewables, grid interconnections, powering data centers and electrifying transportation. Most importantly, they play key role in facilitating the decarbonization of energy systems.

Hitachi Energy is the world’s largest transformer manufacturer in terms of installed base, portfolio range, manufacturing capacity. In fact, it has a market coverage of over 60 transformer factories and service centers across the world.

Growing the service and digital capabilities is part of the company’s efforts to help utilities and industries operate and maintain their electrical assets. Digitalization enables efficient operations across the whole value chain, enabling reliability-centered asset management programs to help our customers extend the transformers’ life cycle, support sustainability, and allow delayed investments in new equipment.

All the announced transformer investments include sustainable and innovative manufacturing technologies for operational efficiency. At the same time, ensuring high standards for safety and quality.

They are advancing the company’s efforts to become carbon-neutral by 2030 and aim to create positive economic and social impact in the local communities. Hitachi Energy employs over 17,000 people across the globe in its Transformer business. moreover, it plans to increase its workforce by adding 4,000 new jobs to the industry.

-25 April 2024-