Switzerland-based Hitachi Energy has announced an additional investment of more than $1.5bn in a move to increase its global transformer production capacity by 2027.
The investment is aimed at steadily expanding the company’s global transformer capacity to meet the rising demand, while also bolstering long-term plans and electrification initiatives.
Hitachi Energy has also revealed an investment of approximately $180m in a new 30,000m2 transformer factory in the Finnish region of Vaasa.
According to the Swiss company, the expansion of its capacity will increase speed to market to address global demand and long-term customer investments. The capacity expansion is also expected to generate more than 4,000 jobs.
The transformer division of the company provides a range of products including liquid-filled and dry-type transformers, along with life-cycle support services such as replacement parts and components.
Hitachi Energy`s latest commitment builds upon its previously announced investment of $3bn in late 2023. The earlier investment is specifically aimed at accelerating the electrification of the energy system, in line with the ongoing energy transition.
The expansion of the company`s transformer facilities encompasses various projects, including the ongoing project in South Boston, Virginia, US, as well as recently completed projects in Jefferson City, Missouri, US, and Dos Quebradas in Colombia.
Besides, Hitachi Energy has launched new plants in Chongqing, China, and Hanoi, Vietnam, in addition to a new transformer service centre in Welshpool, Australia.
The company said that further investments will be followed in Europe, the Americas, and Asia by utilising the company’s global footprint to keep up with the increasing demand for power and distribution transformers.
Hitachi Energy transformers business managing director Bruno Melles said: “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 digitalisation and technology to deliver even more sustainable and reliable solutions.”
In May 2023, Hitachi Energy signed agreements with Saudi Electricity Company (SEC) and ENOWA to design and develop the first phase of the transmission system for the planned NEOM smart city in Saudi Arabia.
