Hitachi Energy has announced plans to invest an additional $1.5 billion to enhance its global transformer manufacturing capabilities by 2027, responding to the increased global demand and furthering long-term electrification initiatives.
The latest investment supplements a previous commitment of $3 billion aimed at advancing the electrification of the energy system, stimulated by the ongoing energy transition.
Bruno Melles, Managing Director of the Transformers Business at Hitachi Energy, stated, “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 digitalization and technology to deliver even more sustainable and reliable solutions.”
A significant portion of the new funding, approximately $180 million, is allocated for constructing a new 30,000sqm transformer factory in the Vaasa region of Finland. Additionally, the company will be expanding many of its other sites, with ongoing projects in South Boston, Virginia, US, and newly completed sites in Jefferson City, Missouri, US, and Dos Quebradas, Colombia.
The company has also opened new factories in Chongqing, China, and Hanoi, Vietnam, and a new transformer service center in Welshpool, Australia.
Melles further commented, “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.”
Transformers are crucial for the efficient transmission and distribution of electricity and play a vital role in integrating renewable energy sources, facilitating grid interconnections, and supporting the electrification of various sectors, such as transportation.
As part of its growth strategy, Hitachi Energy is focusing on expanding its service and digital capabilities to assist utilities and industries in efficiently managing their electrical assets. This includes the implementation of reliability-centered asset management programs that enhance operational efficiencies and extend the lifecycle of transformers.
The investment aims not only to boost manufacturing capacities but also to adopt sustainable and innovative manufacturing technologies that align with Hitachi Energy’s goal to achieve carbon neutrality by 2030.