Hitachi Energy Expands North American Manufacturing with $155M
Hitachi Energy Expands Manufacturing in North America
At a recent event in New York, Hitachi Energy revealed its plans to invest over $155 million to significantly enhance manufacturing capabilities in North America. This bold initiative includes building a new factory for distribution transformers in Reynosa, Mexico, along with expansions to existing facilities in South Boston, Virginia, and Mount Pleasant, Pennsylvania.
Growth Driven by SurgingDemand
The order backlog for Hitachi Energy has more than tripled since 2020, primarily fueled by strong demand in the U.S. market. The company has welcomed over 8,000 new employees from 2020 to 2023, with more than 1,200 of those positions established in the United States. With previous investments of over $150 million announced, Hitachi Energy is actively considering additional investment opportunities in the region.
CEO’s Insights on Manufacturing Investments
CEO Andreas Schierenbeck emphasized the critical nature of this investment: "There is a worldwide surge in demand for electrical equipment, notably transformers and switchgear. Our top priority is to scale our capabilities to meet both current and upcoming customer needs. We aim to expand our presence in North America while emphasizing research, development, and innovation, all while maintaining safety and reliability."
Focused Investments on Transformers
Among the investments outlined, $70 million is earmarked for the new distribution transformer factory in Reynosa, which will specifically address the North American need for single-phase, padmount distribution transformers, while creating 350 jobs. Additionally, an investment exceeding $25 million will enhance the production capacity of large distribution transformers at the South Boston facility, contributing to around 100 new jobs ranging from skilled manufacturing to administrative roles.
Regional and Global Capacity Expansion
These endeavors are part of a broader strategy which also involves enhancing transformer capacity globally. Recent expansions have occurred in Varennes, Quebec, Canada, and projects have been completed in Jefferson City, Missouri. These steps aim to fortify Hitachi Energy’s standard of excellence in transformer production.
High Voltage Switchgear and Breakers Enhancement
Hitachi Energy is also investing $60 million in its Mount Pleasant, Pennsylvania operation. This additional funding focuses on doubling the production capacity for high-voltage switchgear and breakers, ensuring the company meets the intensified demand for these critical products in North America. This expansion is projected to create about 100 new job opportunities.
Sustainability Commitment with New Technology
A prominent part of the investment will see the implementation of a new gas management system for the production of EconiQ switchgear. This innovative technology is crucial as it eliminates the use of sulfur hexafluoride (SF6), the most potent greenhouse gas, underscoring Hitachi Energy’s dedication to sustainable practices and positioning itself as a leader in eco-efficient energy solutions.
A Leader in Global Manufacturing
Hitachi Energy boasts the world’s largest transformer installed base, unmatched market coverage, and extensive manufacturing capabilities. The company prides itself on its leadership in high-voltage technology, consistently fostering innovations that align with sustainability practices.
Moreover, the EconiQ portfolio offers eco-efficient solutions that maintain high safety and performance standards while minimizing carbon footprints. With facilities across various regions, including Europe, South America, and Asia, Hitachi Energy is ensuring that it can respond swiftly to market demands.
About Hitachi Energy
Hitachi Energy is recognized as a global technology pioneer, working towards a sustainable energy future. The company enhances energy systems globally, fostering flexibility, security, and sustainability, benefiting both the present and future generations. With an established presence in over 140 countries, Hitachi Energy collaborates across various sectors to promote the transition to a carbon-neutral future. Its innovative technologies assist in the digital transformation necessary for this significant shift.
Frequently Asked Questions
What is the primary focus of Hitachi Energy's new investments?
Hitachi Energy's investments are aimed at expanding manufacturing capabilities in North America, specifically in transformer production and high-voltage switchgear.
How much is Hitachi Energy investing in North America?
Hitachi Energy has announced an investment of over $155 million to enhance manufacturing facilities across North America.
Will the investment create new jobs?
Yes, the expansion efforts are expected to create more than 600 new jobs across various facilities in North America.
What technology is Hitachi Energy adopting to promote sustainability?
Hitachi Energy is implementing the EconiQ technology, which eliminates the use of sulfur hexafluoride (SF6) in its switchgear production for a lower carbon footprint.
How does this investment align with Hitachi Energy's corporate goals?
This investment supports Hitachi Energy's corporate goal of enhancing capabilities to meet growing demand while prioritizing sustainability and eco-efficiency in its operations.
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