Hitachi Energy has announced investments exceeding $1.5 billion to enhance its worldwide transformer manufacturing capability, aiming to meet the increasing demand and bolster long-term electrification initiatives. These investments, slated to expand the company's transformer capacity by 2027, complement the previously announced $3 billion allocated for advancing energy system electrification amidst the ongoing 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 digitalization and technology to deliver even more sustainable and reliable solutions", said Bruno Melles, Managing Director of the Transformers Business at Hitachi Energy.
Expansion of Hitachi Energy's transformer facilities encompasses the ongoing initiative in South Boston, Virginia, USA, alongside recently finalized projects in Jefferson City, Missouri, USA, and Dos Quebradas, Colombia. Furthermore, the company has launched state-of-the-art manufacturing plants in Chongqing, China, and Hanoi, Vietnam, in addition to inaugurating 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 centers and electrifying transportation, facilitating the decarbonization 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.
Expanding service and digital capabilities is integral to the company's commitment to assisting utilities and industries in effectively managing and maintaining their electrical assets. Digitalization facilitates streamlined operations throughout the entire value chain, facilitating reliability-centered asset management programs that empower customers to prolong the lifecycle of transformers, promote sustainability, and defer investments in new equipment.
Every transformer investment announced incorporates sustainable and cutting-edge manufacturing technologies to enhance operational efficiency while maintaining stringent standards for safety and quality. These investments are driving the company's mission to achieve carbon neutrality by 2030 and are designed to generate positive economic and social outcomes within local communities. With a global workforce exceeding 17,000 in its Transformer business, Hitachi Energy intends to expand its team by creating an additional 4,000 jobs within the industry.