Hitachi Energy to invest additional $1.5bn to ramp up global transformer production by 2027

ZURICH: Hitachi Energy on Thursday revealed investments of over $1.5 billion to ramp up its global transformer manufacturing capacity to keep pace with the growing demand and support the long-term plans and electrification efforts.

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, and we are investing to address our customers’ mid- and long-term needs. We are developing our global footprint and capacity and progressing in digitalistion and technology to deliver even more sustainable and reliable solutions,” said Bruno Melles, Managing Director of the Transformers Business at Hitachi Energy, during the company’s flagship customer event, Energy & Transformers Days in Rome, Italy.

The company also announced an investment of around $180 million in a new state-of-the-art transformer factory in Vaasa region, Finland. This top-notch 30,000-square-metre 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. Leveraging the company’s global footprint, additional investments will follow in Europe, the Americas, and Asia to meet the growing demand for power and distribution transformers.

Hitachi Energy’s transformer facility expansions include the ongoing project in South Boston, Virginia, US, and 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.

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 centres and electrifying transportation, facilitating the decarbonisation of energy systems.

Hitachi Energy is the world’s largest transformer manufacturer in terms of installed base, portfolio range, manufacturing capacity, and market coverage, with 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. Digitalisation 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 while 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 and plans to increase its workforce by adding 4,000 new jobs to the industry.