Dive Brief:
- Hitachi Energy announced plans on Monday to invest $155 million to expand its North America manufacturing capacity across three plants.
- The plans include $25 million to expand Hitachi’s Virginia transformer factory, $60 million to expand its Pennsylvania high-voltage switchgear and breakers factory and $70 million to construct a distribution transformer factory in Reynosa, Mexico.
- Hitachi is pushing to keep up with rising demand driven in large part by the U.S., with the company’s order backlog more than tripling since 2020.
Dive Insight:
Hitachi Energy added over 8,000 employees between 2020 and 2023, including more than 1,200 in the U.S., to keep up with demand, according to the release.
“Demand for electrical equipment, including transformers and switchgear, is surging globally, and significantly in North America, and one of our highest priorities is making sure that we are growing our capabilities to address our customer's present and future needs,” CEO Andreas Schierenbeck said in the release.
The $25 million investment in South Boston, Virginia, will help expand production capacity for large distribution transformers and is expected to create about 100 new jobs. Hitachi previously modernized the facility in 2022 with a $37 million investment to add automated equipment and changes in plant processes to reduce factory cycle times and improve operational performance.
The $70 million Mexico transformer factory aims to address the need for single-phase, padmount distribution transformers and bring 350 jobs to the region, the release stated. The specific type of transformer is suitable for servicing residential overhead distribution loads, light commercial loads, industrial lighting and diversified power applications, according to the company’s website.
Hitachi also completed an expansion of one of its largest transformer facilities in Jefferson City, Missouri. The factory spans more than 600,000 square feet and has approximately 950 employees.
The latest expansions are part of Hitachi Energy’s promise to invest $1.5 billion to increase its global transformer manufacturing capacity by 2027 and double its transformer production testing and capacity, the company announced in April.
Demand for electrical equipment, including transformers and switchgear, is surging globally.
In July, Schneider Electric decided to expand two power distribution products in South Carolina, while Cleveland-Cliffs is opening a transformer facility in Weirton, West Virginia, in 2026. In November 2023, Siemens Energy announced it’s building a $150 million high-tech manufacturing plant in Fort Worth, Texas.
