Hitachi Energy to invest additional $1.5 billion to ramp up global transformer production by 2027
April 23 2024 - 6:09AM
Hitachi Energy to invest additional $1.5 billion to ramp up global
transformer production by 2027
Hitachi Energy today revealed investments of over $1.5 billion to
ramp up its global transformer manufacturing capacity to keep pace
with the growing demand and support the long-term plans and
electrification efforts.
The investments will gradually expand the
company’s global transformer capacity by 2027 and are in addition
to the $3 billion already announced to progress on the
electrification of the energy system driven by the energy
transition.
"The demand for transformers and electrical
equipment has grown at an unprecedented scale, and we are investing
to address our customers' mid- and long-term needs. We are
developing our global footprint and capacity and progressing in
digitalization and technology to deliver even more sustainable and
reliable solutions," said Bruno Melles, Managing Director of the
Transformers Business at Hitachi Energy, during the company's
flagship customer event, Energy & Transformers Days in Rome,
Italy.
Today, the company is also announcing an
investment of around $180 million in a new state-of-the-art
transformer factory in the Vaasa region, Finland. This top-notch
30,000-square-meter campus will be a testament to Hitachi Energy's
dedication to innovation, quality, and environmental
stewardship.
The investments complement Hitachi Energy's
broader growth efforts, which include the recently announced larger
than $30 million expansion in Bad Honnef, Germany. Leveraging the
company’s global footprint, additional investments will follow in
Europe, the Americas, and Asia to meet the growing demand for power
and distribution transformers.
Hitachi Energy’s transformer facility expansions
include the ongoing project in South Boston, Virginia, US, and
other recently completed projects at Jefferson City, Missouri, US,
and Dos Quebradas, Colombia. In addition, the company has
inaugurated new cutting-edge factories in Chongqing, China, and
Hanoi, Vietnam, together with a new transformer service center in
Welshpool, Australia.
“Our global investments, including the new
transformer campus in Finland, underline our commitment to
co-create with our utility and industry customers and partners the
path to accelerate the energy transition. By strategically
leveraging our global footprint, technology, and the expertise of
our teams, we are not only poised to meet the global demand for
sustainable energy solutions but also to drive the innovation
necessary for a carbon-neutral future,” Melles added.
Transformers play a key role across the power
value chain, enabling efficient transmission and distribution of
electricity. They are a key component for applications such as
integrating renewables, grid interconnections, powering data
centers and electrifying transportation, facilitating the
decarbonization of energy systems.
Hitachi Energy is the world's largest
transformer manufacturer in terms of installed base, portfolio
range, manufacturing capacity, and market coverage, with over 60
transformer factories and service centers across the world.
Growing the service and digital capabilities is
part of the company's efforts to help utilities and industries
operate and maintain their electrical assets. Digitalization
enables efficient operations across the whole value chain, enabling
reliability-centered asset management programs to help our
customers extend the transformers' life cycle, support
sustainability, and allow delayed investments in new equipment.
All the announced transformer investments
include sustainable and innovative manufacturing technologies for
operational efficiency while ensuring high standards for safety and
quality. They are advancing the company's efforts to become
carbon-neutral by 2030 and aim to create positive economic and
social impact in the local communities. Hitachi Energy employs over
17,000 people across the globe in its Transformer business and
plans to increase its workforce by adding 4,000 new jobs to the
industry.
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About Hitachi EnergyHitachi Energy is a
global technology leader that is advancing a sustainable energy
future for all. We serve customers in the utility, industry and
infrastructure sectors with innovative solutions and services
across the value chain. Together with customers and partners, we
pioneer technologies and enable the digital transformation required
to accelerate the energy transition towards a carbon-neutral
future. We are advancing the world's energy system to become more
sustainable, flexible and secure whilst balancing social,
environmental and economic value. Hitachi Energy has a proven track
record and unparalleled installed base in more than 140 countries.
We integrate more than 150 GW of HVDC links into the power system,
helping our customers enable more wind and solar. Headquartered in
Switzerland, we employ more than 40,000 people in 90 countries and
generate business volumes of over $10 billion
USD.https://www.hitachienergy.comhttps://www.linkedin.com/company/hitachienergyhttps://twitter.com/HitachiEnergy
About Hitachi, Ltd.Hitachi drives Social
Innovation Business, creating a sustainable society through the use
of data and technology. We solve customers' and society's
challenges with Lumada solutions leveraging IT, OT (Operational
Technology) and products. Hitachi operates under the business
structure of "Digital Systems & Services" - supporting our
customers' digital transformation; "Green Energy & Mobility" -
contributing to a decarbonized society through energy and railway
systems, and "Connective Industries" - connecting products through
digital technology to provide solutions in various industries.
Driven by Digital, Green, and Innovation, we aim for growth through
co-creation with our customers. The company's consolidated revenues
for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1
billion yen, with 696 consolidated subsidiaries and approximately
320,000 employees worldwide. For more information on Hitachi,
please visit the company's website at https://www.hitachi.com.
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