I’ve become a bit cynical about all the investment announcements by companies currying political favor (Hi, Tim Cook) wondering if these are merely publicity events. We have seen a number of big announcements in the past that have not paid off in actual manufacturing.
Hitachi Energy forwarded a release announcing a $106 million investment to expand transformer component manufacturing capacity at a facility in Alamo, Tennessee. The spokesperson assured me that they were actually breaking ground today and that real production would commence when completed.
I hope so.
The news in brief.
- Project will create approximately 100 new jobs in Crockett County; leverages support from the State of Tennessee
- Investment supports fast-growing demand for transformer components such as HVDC and dry-type bushings from Hitachi Energy
- An additional 60,000 sqft will be added to the manufacturing facility to create room for more production lines to boost capacity and support customer demand
The Alamo expansion will significantly boost production of transformer bushings, including dry bushings for high-voltage direct current (HVDC) and alternating current (AC) transmission systems up to 800 (kilovolts) kV. Once complete, the site will become the largest bushings manufacturing facility in North America, and one of the largest in the world. This investment recognizes the Alamo facility’s strategic importance in the U.S. domestic supply chain for power transmission infrastructure. The components manufactured in Alamo will support the growing need for long-distance power transmission to enable the rapid expansion of data centers, AI infrastructure, and other electrifying industries.
The project adds over 60,000 square feet to the facility, including over 35,000 square feet for manufacturing, 20,000 square feet of warehouse space, and 5,000 square feet of new office space. The expanded site is expected to be operational by mid-2027 and will create over 100 new jobs in West Tennessee, offering long-term employment opportunities in engineering, skilled trades, and operational support roles.
The project includes the implementation of an integrated logistics center and vertically integrated machine shop, enabling just-in-time delivery, reducing external warehousing needs, and enhancing operational efficiency. The added office space supports recruiting and workforce development in line with long-term growth plans.
By increasing the business’s total HVDC bushing capacity and enhancing global redundancy, the expansion de-risks single-site operations while supporting technology shifts in the market for dry bushings supporting IEEE standards.
This project builds on Hitachi Energy’s broader $6 billion USD global investment strategy announced earlier this year, which includes $1.5 billion USD dedicated to scaling transformer manufacturing worldwide. As the world’s largest transformer manufacturer, Hitachi Energy is advancing grid modernization with industry-leading solutions and a commitment to achieving carbon-neutral operations by 2030.
