Hitachi Energy is investing $300 million in China to expand power transformer and component manufacturing capacity to strengthen its global manufacturing footprint and address rapidly growing demand for transformers. The investment will boost the company’s component manufacturing capacity in Hefei, East China’s Anhui Province, ‘strengthening the resilience of the global transformer value chain to help ease supply chain constraints.’

The investment includes a new state-of-the-art power transformer factory, a new ultra high voltage (UHV) bushing facility, and a digital production line of tap changers in Hefei, believed to be key milestones in the company’s presence in China.

The investment forms part of Hitachi’s $9 billion global investment plan, the largest in the industry, to expand manufacturing capacity, engineering, R&D, and partnerships, as global demand for energy solutions continues to accelerate.

“As demand for electricity surges, driven by rapid growth in AI, data centres, mobility and industrialisation, the need for critical grid equipment has never been greater,” said Bruno Melles, CEO of business unit transformers at Hitachi Energy.

With more than four decades of operations in China, Hitachi Energy has a strong presence in the country with 11 manufacturing sites and capabilities spanning the full value chain, covering R&D, consulting, sales, engineering, manufacturing, and services.