Hitachi Energy, a Switzerland-based electricity equipment manufacturer, has announced plans to invest more than $1.5bn to enhance its global transformer manufacturing capacity.
The investment is aimed at meeting rising demand and supporting electrification initiatives worldwide.
It will gradually boost the company’s transformer production capabilities by the year 2027.
The latest investment is in addition to a previously announced $3bn, which is allocated for advancing the electrification of the energy system amid the ongoing energy transition.
Hitachi Energy Transformers Business managing director Bruno Melles said: “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 digitalisation and technology to deliver even more sustainable and reliable solutions.”
Furthermore, the company announced an investment of around $180m in a new 30,000m² transformer factory located in the Vaasa region of Finland.
These investments are part of Hitachi Energy's wider growth strategy. This includes a recent expansion of more than $30m in Bad Honnef, Germany, as well as expansion of transformer facilities in Virginia and Missouri in the US and in Dos Quebradas, Colombia.
Melles continued: “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.”
Last month, the company formed a partnership with US utility company Grid United to employ its high-voltage direct current technology for transmission projects in the US.
The aim is to connect the eastern and western regional power grids and support growing electricity demand and power sharing between energy markets.
