Hitachi Energy ramps up global transformer capacity with over $1.5bn

Hitachi Energy has revealed investments of over $1.5 billion to ramp up its global transformer manufacturing capacity to keep pace with growing demand.

The investments will gradually expand the company’s global transformer capacity by 2027 and will be spread across their operations in Europe, the Americas and Asia.

The Swiss tech major also announced an investment of $180 million in a new state-of-the-art transformer factory in the Vaasa region, Finland, a 30,000-square-meter campus with double transformer production and testing capacity. The facility will be ready in 2027.

“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,” said Bruno Melles, managing director of the transformers business at Hitachi Energy.

“We are developing our global footprint and capacity and progressing in digitalisation and technology to deliver even more sustainable and reliable solutions.”

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Hitachi Energy’s transformer facility expansions include an ongoing project in South Boston, Virginia, US, and other recently completed projects at Jefferson City, Missouri, US, and Dos Quebradas, Colombia.

In addition, the company inaugurated new factories in Chongqing, China, and Hanoi, Vietnam, together with a new transformer service centre in Welshpool, Australia.

Earlier this year in February, Hitachi Energy also announced a larger than $30 million expansion of its transformer manufacturing facility in Bad Honnef, Germany.

Commented Melles: “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.”

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 centres and electrifying transportation, facilitating the decarbonisation of energy systems.

However, according to Wood Mackenzie authors, demand for transformers has been increasing due to their high lead times and supply chain constraints.

According to the research and consultancy group, power transformer lead times have increased for the last two years – from 115 weeks in 2021, to 130 weeks on average in 2023.

Hitachi Energy claim to be 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 centres across the world.

The company’s transformer investments also aim to support their aim to become carbon-neutral by 2030.

Hitachi Energy employs over 17,000 people globally in its transformer business and plans to increase its workforce by adding 4,000 new jobs to the industry.