Hitachi Energy to spend USD 1.5bn to bolster transformers production

Switzerland-based Hitachi Energy announced a USD-1.5-billion (EUR 1.40bn) investment plan aimed at expanding its global transformer production capacity by 2027 to meet the surging demand driven by energy transition-related grid upgrades.

As part of the expansion initiative, the company also disclosed plans to build a new transformer plant worth USD 180 million in Finland's Vaasa region, covering an area of 30,000 square metres (322,917 sq ft), according to a statement published Tuesday.

The new multi-billion-dollar investment scheme supplements a recently announced USD 3 billion earmarked for advancing the electrification of the energy system in line with the ongoing energy transition. It bolsters the company’s broader growth strategy, including the recent expansion of its power transformer manufacturing facility in Bad Honnef, Germany, valued at over USD 30 million.

Other undertakings in this direction include an ongoing project in Virginia, US and the recently completed projects in Missouri and Colombia. In 2023, the company also launched new factories in China and Vietnam as well as a new transformer service centre in Australia.

(USD 1 = EUR 0.937)

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