Hitachi Energy plans a new South Boston transformer factory

Hitachi Energy has announced a US manufacturing programme exceeding USD 1 billion, including approximately USD 457 million for a new large power transformer factory in South Boston, Virginia. The facility is planned alongside the company’s existing campus. The programme was announced on 4 September 2025 and reported by Manufacturing Dive on 8 September. (https://www.hitachi.com/en-us/press/hitachi-announces-historic-1-billion-usd-manufacturing-investment-to-power-americas-energy-future/)

Production plans for the Virginia campus

The new factory will make transformers for high-voltage transmission, power generation, data centres and large industrial applications. The company forecasts more than 825 new positions in engineering, manufacturing and operations at the South Boston site.

Manufacturing Dive reported that construction was expected to start before the end of 2025, with operations targeted for 2028. Kurt Steinert, the company’s head of external communications in North America, said production would ramp up after opening. The company did not disclose the planned annual production capacity.

A programme across several states

USD 106 million for transformer components in Alamo, Tennessee.
USD 22.5 million for dry-type transformer operations in Bland and supporting facilities in Atkins, Virginia.
USD 70 million for high-voltage components around Mount Pleasant, Pennsylvania.

The Alamo investment was announced separately on 20 August 2025. That expansion adds more than 60,000 square feet, including manufacturing, warehouse and office space. Hitachi Energy targets operation by mid-2027 and more than 100 additional jobs. Its equipment includes bushings for direct-current and alternating-current transmission systems at voltages up to 800 kilovolts.

Support for workers and an established factory

In the September announcement, Governor Glenn Youngkin described a related plan for 96 homes. Halifax County and Virginia Housing are partnering on the development, with a grant from the state’s workforce housing programme. These are housing commitments associated with the planned expansion.

The existing South Boston factory began operating in 1968. A company announcement dated 12 October 2022 described more than USD 37 million for modernisation and expansion, including 26,000 square feet of additional production space. Automated equipment and changes to manufacturing processes were intended to shorten factory cycle times. (https://www.hitachienergy.com/us/en/news-and-events/press-releases/2022/10/hitachi-energy-invests-us-37-million-to-expand-transformer-manufacturing-facility-in-south-boston-virginia)