Hitachi Energy to invest $300 million in China to expand transformer capacity
Hitachi Energy will invest $300 million in China to expand its power transformer and component manufacturing capacity, with the investment focused on facilities in Hefei, Anhui Province. The expansion is aimed at addressing growing global demand for transformers and strengthening the resilience of the global transformer supply chain.
The investment will expand manufacturing capabilities in Hefei, in East China, and is intended to help ease supply chain constraints for critical grid equipment. The company said the investment also reflects China’s strategic importance to its global growth and supply chain strategy.
The China investment forms part of Hitachi Energy’s $9 billion global investment plan to expand manufacturing capacity, engineering, research and development (R&D), and partnerships as demand for energy infrastructure increases.
Manufacturing expansion
The investment includes the establishment of a power transformer factory and a new ultra-high voltage bushing facility. It also includes the launch of a digital production line for tap changers.
Bruno Melles, CEO of Business Unit Transformers, Hitachi Energy, said, “As demand for electricity surges, driven by rapid growth in AI, data centers, mobility and industrialization, the need for critical grid equipment has never been greater. Building on our continued commitment in China, this expansion is an example of how we are strengthening our manufacturing capabilities and reinforcing the resilience of local and global transformer value chains to better support our customers in building more secure, affordable, and sustainable energy systems for the electricity era.”
James Zhao, Executive Vice President and Region Head North Asia, Hitachi Energy, said, “This significant investment reflects our long-term commitment to our customers, partners, and market and demonstrates our confidence in China’s manufacturing ecosystem. The establishment of a state-of-the-art power transformer factory and the new ultra-high voltage bushing facility, as well as the launch of the digital production line of tap changers, are key milestones in the company’s presence in the country. Together, this investment will support China’s development of a new energy system while meeting growing demand from customers around the world.”
Hitachi Energy has operated in China for more than four decades and currently has 11 manufacturing sites in the country. Its operations span research and development, consulting, sales, engineering, manufacturing and services across the value chain.
Photo credit: Hitachi Energy
