Hitachi Energy, a global leader in electrification has announced a USD 300 million investment in China to expand its manufacturing capabilities and meet the rapidly rising global demand for transformers. The investment will increase the company’s production capacity for power transformers and key components at its Hefei facility in Anhui Province, while also strengthening the resilience of the global transformer supply chain and helping address ongoing capacity constraints.
The investment highlights China’s strategic role in Hitachi Energy’s global growth and supply chain strategy. It is part of the company’s USD 9 billion global investment programme, the largest in the industry, aimed at expanding manufacturing capacity, engineering and research and development capabilities, as well as strengthening partnerships to meet accelerating demand for energy infrastructure and electrification solutions.
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“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,” said Bruno Melles, CEO of Business Unit Transformers at Hitachi Energy. “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.”
“This significant investment reflects our long-term commitment to our customers, partners, and market and demonstrates our confidence in China’s manufacturing ecosystem,” said James Zhao, Executive Vice President and Region Head North Asia, Hitachi Energy. “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.”
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With more than four decades of operations in China, Hitachi Energy has a strong presence with 11 manufacturing sites and capabilities spanning the full value chain, from R&D, consulting, sales, engineering, manufacturing, and services.
