The Jeuns

Energy company plans to invest .5B in transformer production expansion

April 23, 2024 | by The Jeuns

Hitachi Energy has revealed plans to invest over .5 billion in boosting its global transformer manufacturing capacity to cater to the increasing demand and support long-term electrification initiatives. The investments will gradually expand the company’s transformer capacity by 2027 and are in addition to the billion already announced to advance the electrification of the energy system.

Bruno Melles, Managing Director of the Transformers Business at Hitachi Energy, mentioned during the Energy & Transformers Days event in Rome, Italy, that the demand for transformers and electrical equipment has surged significantly. The company is investing to address its customers’ mid- and long-term needs by developing its global footprint, expanding capacity, and advancing digitalization and technology for sustainable and reliable solutions.

As part of its expansion plans, Hitachi Energy also announced an investment of around 0 million in a new transformer factory in the Vaasa region, Finland, covering a 30,000-square-meter campus. The company’s broader growth strategy includes recent expansions in Bad Honnef, Germany, and ongoing projects in South Boston, Virginia, Jefferson City, Missouri, Dos Quebradas, Colombia, Chongqing, China, Hanoi, Vietnam, and Welshpool, Australia. These expansions are aimed at meeting the increasing demand for power and distribution transformers globally.

According to a study by the National Renewable Energy Laboratory (NREL), the nation’s transformer stock needs to increase by 160%–260% by 2050 compared to 2021 levels to meet the rising demands for residential, commercial, industrial, and transportation energy. This demand surge is mainly driven by aging transformers, electrification, and potential increases due to extreme weather events and utility resilience programs.

The continuous investments and expansion efforts by Hitachi Energy are aligned with the growing needs for transformer infrastructure to support the energy transition and meet the evolving energy demands of the future.

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