Hitachi Energy expands U.S. transformer production with $22.5 million investment in Virginia

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Hitachi Energy announced plans to invest$22.5 million that will include the opening of a 75,000-square-foot facility in Atkins, Virginia, and upgrading of the company’s existing facility in Bland, Virginia.

Expansion of the Bland facility will add another 80 jobs while increasing production capacity. The new manufacturing facility in Atkins is expected to create about 40 skilled jobs in Smyth County and be fully operational in August 2025.

Hitachi makes dry-type transformers in its Bland facility and will increase the production of these distribution transformer with its new Atkins facility. The dry-type offer several benefits over oil-filled transformers, according to Hitachi Energy, with safety being a major advantage when used in densely populated areas. Furthermore, Hitachi reports that the majority of insulating components used dry-type transformers can be recycled, and the total cost of ownership is lower because installations do not require a fire suppression system.

The company noted that it is investing in educational outreach, science, technology, engineering, mathematics (STEM) programs, and workforce development initiatives across the region.

This investment in Southwest Virginia builds on the momentum of Hitachi Energy’s previous expansion in South Boston, Virginia, announced in 2024. The South Boston facility focuses on scaling production of large distribution transformers.

Just over a year ago, Hitachi Energy announced plans to upgrade and modernize its power transformer factory in Varennes, Canada and other facilities in Montreal.

“Together, these initiatives strengthen Hitachi Energy’s commitment to expanding U.S.-based transformer capacity to meet surging demand,” a company spokesperson told pv magazine USA. “Hitachi Energy is creating skilled jobs, and reinforcing the resilience of the domestic energy grid as part of the company’s broader North American and global investment strategy.”

The report, Major Drivers of Long-Term Distribution Transformer Demand, by researchers at the National Renewable Energy Lab (NREL) call distribution transformers “a bedrock component of our energy infrastructure.” The study found that the increased demand is due to increased electrification, increased clean energy going to the grid as well as an aging electric infrastructure that needs replacement.

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