North America | September 25, 2024

Hitachi Energy Expands Manufacturing Capacity in North America with $155 Million Investment

The substantial investment by Hitachi Energy underscores its dedication to expanding manufacturing capacity in North America to meet increasing energy demands.

 

Courtesy: Hitachi Energy Ltd.

Hitachi Energy has announced a significant investment of over $155 million to enhance its manufacturing capabilities in North America. This initiative includes the establishment of a new distribution transformer factory in Reynosa, Mexico, and expansions at existing facilities in South Boston, Virginia, and Mount Pleasant, Pennsylvania.

Key Investment Details

  1. New Transformer Factory: The new facility in Reynosa will focus on producing single-phase, padmount distribution transformers, which are essential for the North American market. This project is expected to create approximately 350 jobs in the region.
  2. Expansion in South Boston: An investment of over $25 million will be directed towards expanding the transformer factory in South Boston. This expansion aims to increase the production capacity for large distribution transformers and is anticipated to generate around 100 new jobs.
  3. High-Voltage Switchgear Investment: Hitachi Energy will also invest $60 million in its Mount Pleasant facility to double the production capacity for high-voltage switchgear and breakers. This includes dead tank breakers and gas-insulated switchgear, addressing the growing demand for high-voltage products. The investment will create an additional 100 jobs and incorporate a new gas-management system for its EconiQ™ switchgear, which eliminates the use of sulfur hexafluoride, a potent greenhouse gas (SF6-free).

 

Growing Demand and Workforce Expansion

The company’s order backlog has more than tripled since 2020, with substantial contributions from the U.S. market. Between 2020 and 2023, Hitachi Energy added over 8,000 employees globally, including more than 1,200 in the U.S. The investments are part of a broader strategy to enhance production capabilities and meet the surging demand for electrical equipment driven by the energy transition.

Commitment to Sustainability

Hitachi Energy’s investments reflect its commitment to sustainability and innovation within the energy sector. By focusing on eco-efficient solutions like the SF6-free EconiQ portfolio, Hitachi Energy is positioning itself as a leader in high-voltage technology while maintaining safety and performance standards.

Source: Globe Newswire