Hitachi Energy has announced plans to invest an additional $4.5 billion in manufacturing, engineering, digital, R&D, and partnerships by 2027 to support energy transition efforts. This investment complements its recently announced $1.5 billion investment in April to ramp up global transformer production.
These investments will increase its global R&D, engineering and manufacturing capacity of transformers, high-voltage direct current (HVDC) and high-voltage products.
Further, the $4.5 billion will also support the deployment of power electronics-based solutions, grid automation, software solutions, and services, alongside partnerships, supply chain, and broader digitalisation and automation goals.
The company also announced that it is investing around $330 million to expand and modernise its flagship factory in Ludvika and a new campus in Vasteras, Sweden, across all product portfolios.
The Ludvika factory manufactures transformers, high-voltage products, and HVDC systems and will expand by more than 30,000 square metres.
This will enable the manufacturing capacity of large transformers to meet the deliveries of key HVDC projects.
The new Vasteras campus will feature an R&D centre and a state-of-the-art production facility for grid automation.
“Electricity will be the backbone of the entire energy system and the change is happening faster than many thought possible. New business models, harmonization of designs, along with partnerships are key drivers for the increase in the pace of change,” said Claudio Facchin, CEO, Hitachi Energy.
“The world is in a race to transform energy systems. Technology is not the bottleneck and electrification is creating unprecedented demand for power grids systems combined with digital solutions and services. As the market leader, we are responding with an unprecedented level of investment, people and innovation to meet that demand,” added Facchin.