This expansion will benefit from financial support from the Commonwealth of Virginia and Halifax County and is intended to address fast-growing customer demand
Zurich – Hitachi Energy today announced plans to invest more than US$37 million in the expansion and modernization of its power transformer manufacturing facility in South Boston, Virginia to address fast-growing demand from utility customers and for applications such as renewable energy generation and data centers. In addition to its own investments, Hitachi Energy is leveraging financial support from the Commonwealth of Virginia and Halifax County where the facility is located.
Transformers adjust and stabilize the voltage of electricity to ensure an efficient, reliable power supply across the region. This location produces both distribution and power transformers for the nation’s power grid, commercial buildings, and industrial facilities, as well as traction transformers for use in railway applications. The South Boston factory currently covers an area of approximately 607,000 square feet, and hosts about 450 employees.
These latest investments in the facility are for an additional 26,000 sq. ft. of production space in its power transformer building, which will support the manufacturing of larger transformers specifically designed for utility and renewable energy markets. The project also includes investments in automated equipment and changes in factory processes to reduce factory cycle times and improve operational performance. This is particularly critical in the face of current supply chain challenges brought on by the pandemic and other factors.
The South Boston manufacturing facility has been in operation since 1968 and is one of the premier manufacturing locations in Halifax County and Southern Virginia.
“Hitachi Energy’s ambitious expansion in Halifax County represents a strong commitment and tremendous vote of confidence in the Commonwealth of Virginia as a great place to do business,” said Virginia Governor Glen Youngkin. “Hitachi Energy has been an important, long-standing employer in Southern Virginia for nearly 50 years, and we are thrilled the company will create additional good-paying jobs in the community. We are glad to be able to play a small part in making this expansion happen.”
For this expansion, Hitachi is partnering with the Commonwealth of Virginia’s Economic Development Partnership (VEDP)*1 as well as Halifax County’s Industrial Development Authority (IDA).