Hitachi Energy on March 10 announced additional major investments of more than $250 million by 2027 to expand global production of critical components for transformers.
“As the electrification of industries, particularly data centers and AI, drives unprecedented demand for electricity, the need for transformers has surged beyond initial projections. To keep pace with this accelerating demand, Hitachi Energy is expanding its commitment to scale up production and strengthen supply chains in the U.S. and worldwide,” it said.
These investments bolster Hitachi Energy’s manufacturing capabilities across the U.S., enhancing production capacity at the company’s transformer factories in Virginia, Missouri, and Mississippi. It includes transformer components such as bushings and insulation as Hitachi Energy is a critical supplier to other transformer manufacturers.
“This pivotal move will also help alleviate the broader, ongoing transformer supply shortage, ensuring increased production capacity and supply-chain resilience. The global investment program, one of the most significant in the industry today, also strengthens Hitachi Energy’s manufacturing capabilities in Asia, South America, and Europe,” it said.
Transformer insulation and components, such as bushings, tap-changers, insulation material and parts, and other accessories, are essential to the seamless operation of transformers, it noted.
As the world’s largest transformer manufacturer, Hitachi Energy has over 60 transformer factories and 30 service centers worldwide, providing the world's broadest portfolio of transformer insulation and components.
The new investment builds on a $6 billion investment announced in 2024, including $1.5 billion specifically allocated to scaling global transformer production.
All announced capacity investments include sustainable and state-of-the-art manufacturing technologies for operational efficiency while ensuring high standards of safety and quality, the company said.
