Hitachi Energy Commits $450M+ to New Virginia Transformer Factory

Executives of Hitachi Energy say they’ll spend $457 million to build a new transformer plant next to one of its facilities in Virginia. The new factory, which officials say will be the country’s largest for making large power transformers, is expected to employ 825 people once fully up and running.

The new South Boston plant will crank out transformers to be used in high-voltage transmission and power generation projects as well as in data centers and large-scale industrial sites. Word of Hitachi’s large investment plan comes just a few weeks after executives said they’ll spend $100 million to add to the company’s West Tennessee factory, which makes transformer bushings. It’s the latest in a series of investments—by Hitachi as well as manufacturing peers such as GE Vernova, Schneider Electric and Eaton—that aim to increase U.S. manufacturing capacity of critical grid infrastructure in the face of persistent demand and supply shortages.

“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race,” said Andreas Schierenbeck, CEO of Hitachi Energy. “Bringing production of large power transformers to the U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging.”

Construction work on the second South Boston plant will begin by year’s end and be completed by 2028. New workers will be hired in phases but a spokesperson said the company expects to ramp up production and hiring “fairly quickly.”