Hitachi Energy plugs $4.5bn into transformers and high voltage products

Switzerland-based tech company Hitachi Energy has announced an additional investment of $4.5 billion in manufacturing, engineering, digital, R&D and partnerships by 2027, with a focus on transformers, HVDC and high-voltage product lines.

The $4.5 billion doubles the company’s investments over the last three years and will also support the deployment of power electronics-based solutions, grid automation and software solutions, alongside services in line with the Hitachi Energy 2030 Plan.

Investments will also go into partnerships, supply chain, digitalisation and automation, which are enablers to support capacity expansion and increase speed to market.

With the announcement, Hitachi Energy simultaneously announced and investment of approximately $330 million to expand and modernise its flagship factory in Ludvika and a new campus in Vasteras, Sweden, across all product portfolios.

The 120-year old Ludvika factory manufactures transformers, high-voltage products and HVDC systems and Hitachi Energy will now expand it by more than 30,000 square meters. This will enable new manufacturing capacity of large transformers to meet the deliveries of key HVDC projects.

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A new campus in Vasteras will accommodate 1,800 employees, including an R&D centre and a state-of-the-art production facility for grid automation. The workforce in Sweden will additionally grow by 2,000 to support the accelerating energy transition.

Commenting in a release was Claudio Facchin, CEO of Hitachi Energy: “Electricity will be the backbone of the entire energy system and the change is happening faster than many thought possible. New business models, harmonisation of designs, along with partnerships are key drivers for the increase in the pace of change.

“The world is in a race to transform energy systems. Technology is not the bottleneck and electrification is creating unprecedented demand for power grids systems combined with digital solutions and services. As the market leader, we are responding with an unprecedented level of investment, people and innovation to meet that demand.”

Hitachi’s Energy’s renewed investment is the latest initiative coming from the company to cement their position in the power sector.

Earlier this year in April, they announced a $1.5 billion investment to ramp up global transformer production.

Additionally, key HVDC projects were announced by Hitachi Energy through framework agreements signed with RTE in France, RWE in Germany, Marinus Link in Australia, in addition to a service contract with Pattern Energy in the US. The company also announced its position as supplier for the SACOI3 interconnection between Italy and France.