Hitachi Energy Plans $300 Million Investment in China to Expand Transformer Production

en.Wedoany.com Reported - On August 17, Hitachi Energy announced it will launch a strategic investment of approximately $300 million in China to expand its power transformer and key component manufacturing operations. The investment will focus on Hefei, Anhui Province, where Hitachi Energy will develop new power transformer business and increase the scale of transformer component manufacturing.

This round of investment will be implemented based on Hitachi Energy's existing transformer manufacturing base in Hefei. The base currently houses distribution transformer, transformer component, and service operation centers, with products covering oil-immersed distribution transformers, grid-specific transformers, American-style pad-mounted transformers, as well as specialized transformers used in wind power, photovoltaic, and industrial applications.

The component business mainly includes products such as transformer bushings and tap changers. Among these, bushings are used to achieve insulated connections between the transformer's internal conductors and the external power grid, while tap changers are used to regulate transformer voltage. Both types of products are critical components in the manufacturing and operation of power transformers. This investment will simultaneously expand the manufacturing capabilities for both complete power transformers and their components.

Hitachi Energy operates multiple transformer manufacturing bases in China, including Hefei, Shanghai, Zhongshan, and Chongqing, serving sectors such as the power grid, renewable energy, petrochemicals, metallurgy, ports, and industrial manufacturing. The Hefei base, established in 1993, handles transformers, bushings, tap changers, and related services, with some products supplied to markets outside China.

Part of the approximately $300 million investment in China comes from Hitachi Energy's previously announced $9 billion global investment plan. The plan is aimed at expanding manufacturing capacity and increasing investment in R&D, engineering, and supply chain, covering transformers, high-voltage equipment, power electronics, automation, and related grid technologies.