Hitachi Energy has announced plans to invest an additional US$155m to expand its manufacturing capacity in North America.
This includes the construction of a new distribution transformer factory (pictured) in Reynosa, Mexico, and expansions to its transformer factory in South Boston, Virginia, and its high-voltage switchgear and breakers factory in Mount Pleasant, Pennsylvania.
The order backlog of the company has more than tripled since 2020 with the US making a substantial contribution.
Hitachi Energy has added over 8000 employees between 2020-2023, including more than 1200 in the US.
In North America, we have already announced over US$150m of investments and future investment plans are under consideration.
Hitachi Energy chief executive Andreas Schierenbeck said: “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.
“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.
The investments in North America include US$70m in the construction of a new distribution transformer factory in Reynosa, Mexico alongside an additional investment of over US$25m to expand its South Boston, Virginia transformer factory, in the US.
The new transformer factory in Reynosa 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 South Boston 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, US.
Hitachi Energy is also announcing a US$60m investment in its Mount Pleasant, Pennsylvania facility.
This expansion aims to double production capacity for high-voltage switchgear and breakers, including dead tank breakers, gas-insulated switchgear and hybrid switchgear.
Driven by the surging demand for high-voltage products in North America, the investment will create around 100 new jobs, Hitachi said.