Hitachi to double US production of small and medium-sized power transformers
A new Mississippi facility will produce transformers in the 10 MVA to 160 MVA range, designed for voltages up to 230 kV. The additional capacity “is expected to help alleviate industry-wide supply constraints,” a Hitachi official told Utility Dive.
Hitachi Energy intends to more than double its manufacturing capacity of small and medium-sized power transformers in the United States with the opening of a new $528 million facility in Gallman, Mississippi, the company declared on Tuesday. Led by Greg Callahan, Hitachi's senior vice president and head of its transformer business in North America, the project will see the production of transformers rated between 10 MVA and 160 MVA, suitable for voltages up to 230 kV.
This new plant will be more than twice the size of Hitachi's existing Crystal Springs facility in Mississippi, promising a substantial increase in transformer production capacity. While Hitachi doesn't disclose specific production volumes by facility, the magnitude of the investment underscores the scale of the expansion. The Gallman facility represents Hitachi Energy's largest single investment in the U.S., contributing to its overall manufacturing expansion commitment of approximately $1.5 billion in the country.
In addition to the Gallman facility, Hitachi is also expanding production capacity at sites in Pennsylvania, Virginia, and Tennessee. With production slated to commence in 2029, this additional capacity is anticipated to help address industry-wide supply constraints once it becomes operational. The transformer industry is currently facing robust demand, driven by the rapid growth in data centers, manufacturing, and electrification, which are collectively increasing electricity demand.
As the new factory becomes fully functional, transformer production will shift from the Crystal Springs facility to Gallman. Hitachi Energy's customer lead times for transformers depend on various factors, including transformer specifications, project complexity, and market conditions. Callahan emphasized that expanding manufacturing capacity is a crucial step towards increasing supply and enhancing responsiveness to customer demand in the long run.
Meanwhile, the Department of Energy is reportedly considering modifications to a Biden-era transformer rule, which has raised concerns among utilities.
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