23.04.2024 13:09:09 - dpa-AFX: GNW-Adhoc: Hitachi Energy to invest additional $1.5 billion to ramp up global transformer production by 2027
Zurich, April 23, 2024 (GLOBE NEWSWIRE) -- 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
(https://www.hitachienergy.com/news/press-releases/2023/10/hitachi-energy-
passes-150-gw-in-hvdc-links-integrated-into-the-power-system-expands-capacity-
to-meet-accelerating-energy-transition-demand) 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 (https://www.hitachienergy.com/news/press-releases/2024/02/hitachi-
energy-invests-over-30-million-euros-to-expand-transformer-operations-in-
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 (https://www.hitachienergy.com/us/en/news/press-
releases/2022/10/hitachi-energy-invests-us-37-million-to-expand-transformer-
manufacturing-facility-in-south-boston-virginia), and other recently completed
projects at Jefferson City, Missouri, US
(https://www.hitachienergy.com/us/en/news/press-releases/2022/05/hitachi-energy-
invests-us-10-million-to-expand-its-flagship-transformer-manufacturing-facility-
in-jefferson-city-missouri), and Dos Quebradas, Colombia. In addition, the
company has inaugurated new cutting-edge factories in Chongqing, China
(https://www.hitachienergy.com/news/press-releases/2023/09/hitachi-energy-
inaugurates-state-of-the-art-transformers-factory-in-china), and Hanoi, Vietnam
(https://www.hitachienergy.com/news/press-releases/2023/11/hitachi-energy-
inaugurates-cutting-edge-transformers-factory-in-vietnam), together with a new
transformer service center in Welshpool, Australia
(https://www.hitachienergy.com/news/press-releases/2023/10/hitachi-energy-
inaugurates-cutting-edge-transformer-service-workshop-in-welshpool).
"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 (https://www.hitachienergy.com/products-and-solutions/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 Energy
Hitachi 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.com (https://www.hitachienergy.com/)
https://www.linkedin.com/company/hitachienergy
https://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
(https://www.hitachi.com/).
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