Hitachi Energy announced an additional investment of more than $250 million USD by 2027 to expand global production of critical transformer components. The announcement, made at CERAWeek, follows the company’s previously disclosed $6 billion USD investment across its portfolio and reflects the increasing demand for transformers amid the ongoing global supply shortage.
As industries such as data centers and artificial intelligence drive heightened electricity consumption, the need for transformers continues to grow. In response, Hitachi Energy is further scaling its manufacturing capacity and reinforcing supply chains in the U.S. and internationally.
The investment will expand production capabilities at Hitachi Energy’s transformer facilities in Virginia, Missouri, and Mississippi, as well as enhance the manufacturing of essential transformer components, including bushings and insulation. The company is a key supplier of these components to other transformer manufacturers, supporting the broader industry.
Beyond the U.S., this initiative will also strengthen production in Asia, South America, and Europe, contributing to increased capacity and supply-chain resilience worldwide.
“The demand for transformers and grid infrastructure is rising at an unprecedented scale and pace,” said Andreas Schierenbeck, CEO of Hitachi Energy. “As a leading transformer manufacturer, we are committed to expanding capacity and accelerating the delivery of transformers and critical components to support the industry’s growth and infrastructure needs.”
These transformer investments are part of Hitachi Energy’s larger, multi-billion-dollar initiative aimed at advancing manufacturing, engineering, digitalization, research and development, and partnerships across key markets. The company is also implementing enhancements in supply chain management and automation to improve production efficiency and speed to market.
Transformers play a vital role in the global energy transition by facilitating the transmission and distribution of electricity. They support renewable energy integration, grid expansion, electrified transportation, and broader decarbonization efforts. Insulation and other transformer components, such as bushings and tap changers, are essential for maintaining transformer performance and reliability.
This latest investment builds on the company’s 2024 announcement, which included $1.5 billion USD dedicated to scaling global transformer production. All capacity expansions incorporate sustainable, advanced manufacturing technologies designed to enhance operational efficiency while maintaining high safety and quality standards.
