Photo caption: Hitachi Energy distribution transformer factory in Reynosa, Mexico
NEW YORK, U.S., and ZURICH, Switzerland – At Climate Week NYC, Hitachi Energy announced plans to invest an additional $155 million USD to expand its manufacturing capacity in North America. This includes the construction of a new distribution transformer factory in Reynosa, Mexico, expansions to its transformer factory in South Boston, Virginia, and its high-voltage switchgear and breakers factory in Mount Pleasant, Pennsylvania.
The order backlog of the company has more than tripled since 2020 with the U.S. making a substantial contribution. Hitachi Energy has added over 8,000 employees between 2020-2023, including more than 1,200 in the U.S. In North America, it has already announced over $150 million USD of investments, and future investment plans are under consideration.
“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,” said Andreas Schierenbeck, CEO of Hitachi Energy. “To achieve our goals, we will continue to expand and optimize our footprint in the North American region, leverage our expansive global presence, and prioritize R&D and innovation to drive the energy transition without compromising safety and reliability.”
Transformers
The investments in North America include $70 million USD in the construction of a new distribution transformer factory in Reynosa, Mexico alongside an additional investment of over $25 million USD to expand its South Boston, Virginia transformer factory.
The new transformer factory in Reynosa will address the need for single-phase, padmount distribution transformers used widely in the North American market and will bring 350 jobs to the region.
The investment in South Boston will help expand the production capacity for large distribution transformers and is expected to contribute to the region’s economic growth and development, creating about 100 new jobs ranging from skilled manufacturing to administrative roles.
These initiatives are adding up to other announced investments to enhance the transformers’ capacity, including investments directly in the region and globally. In the region, this includes the expansion in Varennes, Quebec, Canada, and the recently completed project in Jefferson City, Missouri.
Hitachi Energy announced projects in April and July of 2024 in Canada of an overall $140 million (CAD) investment to support the establishment of a new HVDC simulation center in Montreal, and also upgrade and modernize its power transformer factory in Varennes and other facilities in Montreal.
Globally, Hitachi Energy is also investing in other markets to enhance its global footprint, with more than seven factories currently supporting the market demand for transformers coming from Europe, South America, and Asia.
High Voltage Switchgear and Breakers
Hitachi Energy is also announcing a $60 million USD investment in its Mount Pleasant, Pennsylvania facility. This expansion aims to double production capacity for high-voltage switchgear and breakers, including dead tank breakers, gas-insulated switchgear, and hybrid switchgear. Driven by the surging demand for high-voltage products in North America, the investment will create around 100 new jobs.
A significant portion of the investment includes the implementation of a new gas-management system for EconiQ™ switchgear production. North America has been a pioneer in adopting the EconiQ eco-efficient technology, which eliminates the use of sulfur hexafluoride (SF6), the most potent greenhouse gas from high-voltage equipment. This investment aligns with Hitachi Energy’s commitment to sustainability and reinforces its position as a leader in high-voltage eco-efficient solutions.
Transformers as well as high-voltage switchgear and breakers play a key role across the power value chain, safeguarding and enabling efficient transmission and distribution of electricity.
Hitachi Energy has the world’s largest transformer installed base, portfolio range, market coverage, and manufacturing capacity.
As the leader in high-voltage technology, we remain at the forefront of innovation, advancing eco-efficient solutions through our SF6-free EconiQ portfolio. These innovations retain the highest safety and performance standards while staying compact and offering the lowest carbon footprint in a life-cycle assessment.
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