Hitachi Energy to Invest $155 Million in Expanding U.S. Manufacturing Capacity!
By Ashutosh Arora
At Climate Week NYC, Hitachi Energy announced a substantial investment of $155 million to enhance its manufacturing capabilities across North America, underscoring its commitment to meeting growing market demand. This investment includes the establishment of a new distribution transformer factory in Reynosa, Mexico, and expansions of existing facilities in South Boston, Virginia, and Mount Pleasant, Pennsylvania.
Since 2020, Hitachi Energy’s order backlog has more than tripled, with significant contributions from the U.S. market. The company has seen impressive growth, adding over 8,000 employees globally between 2020 and 2023, including more than 1,200 in the United States. This latest investment is part of a broader strategy, which has already seen over $150 million allocated to North American projects.
The new factory in Reynosa will produce single-phase, padmount distribution transformers, vital for the North American market, and is expected to create approximately 350 jobs. Meanwhile, the expansion in South Boston will increase production capacity for large distribution transformers, generating about 100 new positions across skilled manufacturing and administrative roles.
Hitachi Energy’s initiatives are complemented by investments in other regions, including a recent $140 million CAD commitment to Canada for establishing a new HVDC simulation center in Montreal and upgrading its power transformer factory in Varennes. This global approach aims to bolster its footprint in key markets, including Europe, South America, and Asia.
The investment in the Mount Pleasant facility, totaling $60 million, aims to double production capacity for high-voltage switchgear and breakers, responding to surging demand in North America. This expansion will also create around 100 new jobs. A significant focus of this investment is the implementation of a new gas-management system for EconiQ switchgear production, aligning with Hitachi Energy’s sustainability goals by eliminating sulfur hexafluoride (SF6), a potent greenhouse gas, from high-voltage equipment.
By expanding its capabilities in transformers and high-voltage switchgear, Hitachi Energy reinforces its position as a leader in the power value chain, dedicated to providing eco-efficient solutions that prioritize safety, performance, and a reduced carbon footprint. With the world’s largest installed base and extensive manufacturing capacity for transformers, Hitachi Energy continues to lead the industry in innovation and sustainability.
