Hitachi Energy, reputedly the world’s largest transformer manufacturer, has announced additional major investments of more than $250 million by 2027 to expand global production of critical components for transformers. This rapid follow-up to the 2024 announcement of a $6 billion USD investment across the company portfolio reflects the escalating transformer shortage, which continues to increase.
As the electrification of industries, particularly data centres 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 USA and worldwide.
These investments will enhance production capacity at the company’s US transformer factories in Virginia, Missouri, and Mississippi. It includes transformer components such as bushings and insulation, which Hitachi Energy supplies to other transformer manufacturers. Hitachi Energy plans also to increase its manufacturing capabilities in Asia, South America, and Europe.
Transformer investments are part of a broader, multi-billion-dollar investment plan that Hitachi Energy is deploying across its manufacturing, engineering, digital, R&D, and partnership activities. These investments are being rolled out across all major markets globally to enable the company to meet customers’ commitments and market demand. Hitachi Energy is also delivering enhancements in supply chain management, digitalisation, and automation, allowing capacity expansion and accelerated speed to market.
Hitachi says that all the announced capacity investments are advancing its efforts to become carbon-neutral in its own operations by 2030.
