International technology group Hitachi Energy is spending $37 million to expand and modernize a Virginia electric power transformer manufacturing facility in South Boston.
This move is in response to what the company says are increasing demands on the market for transformers, which is driven by data centers, utility customers and new renewable power generation projects, among others.
T&D World has an in-depth story about the scarcity of large transformers and the effect this trend is having on the utility industry, which you can read here.
The project will draw upon financial benefits and incentives offered by the Commonwealth of Virginia and Halifax County, Virginia, where the project is location.
Transformers adjust and stabilize the voltage of electricity to ensure an efficient, reliable power supply across the region. This location produces both distribution and power transformers for the nation’s power grid, commercial buildings, and industrial facilities, as well as traction transformers for use in railway applications. The South Boston factory currently covers an area of approximately 607,000 square feet, and hosts about 450 employees.
These latest investments in the facility are for an additional 26,000 sq. ft. of production space in its power transformer building, which will support the manufacturing of larger transformers specifically designed for utility and renewable energy markets.
The project also includes investments in automated equipment and changes in factory processes to reduce factory cycle times and improve operational performance. This is particularly critical in the face of current supply chain challenges brought on by the pandemic and other factors.
The South Boston manufacturing facility has been in operation since 1968 and is one of the larger manufacturing locations in Halifax County and Southern Virginia.
For this expansion, Hitachi is partnering with the Commonwealth of Virginia’s Economic Development Partnership (VEDP) as well as Halifax County’s Industrial Development Authority (IDA).
Hitachi Energy is recruiting in South Boston, offering skilled manufacturing positions and opportunities across a range of corporate functions, from experienced professional opportunities to early career openings.
