Hitachi Energy’s US$155m Investment Underpins Energy Future

Global technology leader Hitachi Energy has made a name for itself providing solutions for its clients across utilities, industry and infrastructure.

Its ethos of advancing a sustainable energy future for all driving its future aspirations and continued growth.

With a 45,000-strong workforce across 90 countries, Hitachi Energy now generates business volumes of around US$13bn.

This power and influence sees Hitachi Energy command itself not just across the energy space but in industry too, namely manufacturing.

This is particularly evident with increased electrification and demand for electricity brought about by the energy transition. As a global technology leader, Hitachi Energy is well-positioned to support its customers to advance a sustainable energy future for all.

Hitachi Energy: Bolstering manufacturing capacity in North America

In a strategic move to meet ever-increasing demand for sustainable energy solutions, Hitachi Energy will invest more than US$155m in North America.

In line with this, Hitachi Energy has grown its workforce by 8,000 employees globally between 2020-23, including more than 1,200 in the US.

But what has encouraged this development in North America? Hitachi’s order backlog has more than tripled since the start of the decade, reflecting a growing need for reliable electrical equipment.

It already has more than US$150 million of investments and future investment plans are under consideration in the US alone.

"Demand for electrical equipment — including transformers and switchgear — is surging globally and significantly in North America,” said Andreas Schierenbeck, CEO of Hitachi Energy.

“One of our highest priorities is making sure that we are growing our capabilities to address our customer’s present and future needs.

“To achieve our goals, we will continue to expand and optimise our footprint in the North American region, leverage our expansive global presence and prioritise R&D and innovation to drive the energy transition without compromising safety and reliability.”

What does this move mean for energy and manufacturing?

A significant portion of the investment — US$70m — will fund a new distribution transformer factory in Reynosa, Mexico.

As well as this, US$25m has been set aside to expand its South Boston, Virginia transformer factory.

The Reyosa facility will produce single-phase padmount distribution transformers, which are essential in the North American market, and is expected to create around 350 jobs in the region.

The South Boston expansion aims to increase production capacity for large distribution transformers and is projected to generate approximately 100 new jobs across various roles, from skilled manufacturing to administrative positions.

Hitachi Energy is also directing US$60m towards expanding its Mount Pleasant, Pennsylvania facility. This investment will double the production capacity for high-voltage switchgear and breakers, including dead tank breakers and gas-insulated switchgear. 

The expansion is driven by a marked increase in demand for high-voltage products in North America and will create an additional 100 jobs.

A key feature of this investment includes implementing a new gas-management system for EconiQ™ switchgear production. This innovative technology eliminates the use of sulphur hexafluoride (SF₆), a potent greenhouse gas, aligning with Hitachi Energy’s commitment to sustainability and eco-efficient solutions.

The company said: “As the leader in high-voltage technology, we remain at the forefront of innovation, advancing eco-efficient solutions through our SF₆-free EconiQ portfolio. 

“These innovations retain the highest safety and performance standards while staying compact and offering the lowest carbon footprint in a life-cycle assessment.”

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