Hitachi To Invest US$155 Million In North American Manufacturing
Hitachi Energy (Hitachi) has unveiled plans to invest an additional US$155 million to expand its manufacturing capacity in North America. The investment includes US$60 million for the expansion of its high-voltage switchgear and breakers factory in Mount Pleasant, Pennsylvania, US$25 million to expand its distribution, power, and traction transformer factory in South Boston, Virginia, and US$70 million for a new distribution transformer factory in Reynosa, Mexico. The capacity expansion and upgrades will help meet growing energy demand and create hundreds of jobs.
Hitachi’s order backlog has more than tripled since 2020, largely due to growing US demand. Hitachi added over 8000 employees between 2020 to 2023, including more than 1200 in the United States.
“Demand for electrical equipment, including transformers and switchgear, is surging globally, and significantly in North America, and one of our highest priorities is making sure that we are growing our capabilities to address our customer’s present and future needs,” said Andreas Schierenbeck, chief executive officer of Hitachi Energy. “To achieve our goals, we will continue to expand and optimize our footprint in the North American region, leverage our expansive global presence, and prioritize R&D and innovation to drive the energy transition without compromising safety and reliability.”
Transformers
Hitachi’s new transformer factory in Mexico will address the need for single-phase, padmount distribution transformers used widely in the North American market and will bring 350 jobs to the region.
The investment in Virginia will help expand the production capacity for large distribution transformers and is expected to contribute to the region’s economic growth and development, creating about 100 new jobs ranging from skilled manufacturing to administrative roles.
These initiatives are adding up to other announced investments to enhance the transformers’ capacity, including investments directly in the region and globally. In the region, this includes the expansion in Varennes, Quebec, Canada, and the recently completed project in Jefferson City, Missouri.
Hitachi announced projects in April and July of 2024 in Canada of an overall US$104 million investment to support the establishment of a new high voltage direct current simulation center in Montreal, and also upgrade and modernize its power transformer factory in Varennes, and other facilities in Montreal.
Globally, Hitachi is investing in other markets to enhance its global footprint, with more than seven factories currently supporting the market demand for transformers coming from Europe, South America, and Asia.
High Voltage Switchgear and Breakers
Hitachi’s expansion in Pennsylvania aims to double production capacity for high-voltage switchgear and breakers, including dead tank breakers, gas-insulated switchgears, and hybrid switchgears. Driven by the surging demand for high-voltage products in North America, the investment will create around 100 new jobs.
A significant portion of the investment includes the implementation of a new gas-management system for EconiQ switchgear production. According to Hitachi, North America has been a pioneer in adopting EconiQ eco-efficient technology, which eliminates the use of sulfur hexafluoride, the most potent greenhouse gas from high-voltage equipment. This investment aligns with Hitachi’s commitment to sustainability and its position in high-voltage eco-efficient solutions.
Hitachi believes that transformers, as well as high-voltage switchgears and breakers, play a key role across the power value chain in safeguarding and enabling efficient transmission and distribution of electricity.
