Hitachi Energy invests $250M to expand transformer production, addressing global shortages and rising electrification demand.
Dubai: Hitachi Energy has announced an additional $250 million USD investment by 2027 to expand transformer production, addressing the global transformer shortage. This follows the company’s recent $6 billion USD investment across its portfolio, underscoring the urgency of increasing manufacturing capacity.
With industries like data centers and AI driving unprecedented electricity demand, Hitachi Energy is accelerating production scale-up and strengthening supply chains worldwide. Key investments will enhance manufacturing at its U.S. transformer factories in Virginia, Missouri, and Mississippi, focusing on essential transformer components such as bushings and insulation.
Beyond the U.S., the global investment program extends to Asia, South America, and Europe, reinforcing supply chain resilience and supporting critical energy infrastructure. “The demand for transformers and grid infrastructure is rising at an unprecedented scale and pace,” said Andreas Schierenbeck, CEO of Hitachi Energy. “As the world’s largest transformer manufacturer, we have a responsibility to expand capacity and accelerate the delivery of transformers and essential components.”
This initiative aligns with Hitachi Energy’s broader strategy to support decarbonization and electrification. Transformers play a vital role in integrating renewable energy, expanding grid interconnections, and electrifying transportation. The company operates over 60 transformer factories and 30 service centers globally, ensuring widespread access to essential transformer components.
The investments also incorporate advanced manufacturing technologies for improved efficiency, safety, and sustainability. Hitachi Energy aims to achieve carbon neutrality in its operations by 2030 while fostering economic and social benefits in local communities.
