Hitachi Energy plans to invest $457m and create 825 new jobs on its South Boston Campus in Halifax County. The company will be building more power grid components as the demand for electricity is increasing rapidly.
The addition of the new production facility in South Boston will make it the largest manufacturing location for large power converters that help regulate voltage during electricity transmission.
The company announced that the investment is part of a $1-billion project, which includes expanding company facilities across the country. This will create thousands of jobs, as data centres and artificial intelligence are contributing to an “exploding” need for more energy.
In a press release, Hitachi Energy CEO Andreas Schierenbeck stated that power transformers were a key technology in creating a reliable and robust electric grid.
The U.S. must bring large power transformers into production to build a strong supply chain and reduce production bottlenecks. This is crucial as the demand for these transforms is surging across the entire economy.
Hitachi Energy, based in Zurich, Switzerland, manufactures a wide range of electrical equipment, including for the transportation, utility and data center sectors. It has 50,000 employees in 60 countries.
Kurt Steinert, Hitachi’s spokesperson, stated that construction on the new South Boston facility should begin by the end of the year and be completed in 2028.
Steinert stated that the company was unable to provide a timetable for the hiring of the 825 new workers, but it is actively recruiting at its South Boston location.
The company stated that the new jobs will be in engineering, advanced manufacturing, and operations.
Hitachi Energy began construction of its South Boston transformer plant in 1967. It employs 670 workers in South Boston. It also has facilities at Atkins and Bland in Virginia.
Officials from the government and business sectors credited President Donald Trump for his pro-AI policy on Thursday, which facilitated South Boston’s investment. The White House stated that Hitachi’s expansion would accelerate Trump’s energy dominance agenda.
In a press release, U.S. Energy Secretary Chris Wright stated that “if we want to win the AI Race, reindustrialize and keep the Lights on, America will need a lot of more reliable energy.” “Thankfully, Hitachi delivers.”
Halifax County donated 10 Acres of Land near the Hitachi Energy Facility. State funding will accelerate the construction of 96 employee homes, and county officials are waiving some fees.
W. Bryant Claiborne said, in a press release, that Halifax County Board of Supervisors is “honored” to partner with Hitachi on the expansion of South Boston’s facility.
Claiborne stated that “the additional jobs and substantial investment in the community show Hitachi’s dedication to Halifax County, and our commitment towards a strong business environment where industry can thrive.”
The Virginia Economic Development Partnership (VEDP), the Southern Virginia Regional Alliance, and the General Assembly’s Major Employment and Investment Project Approval Commission all worked together to secure this project for Virginia.
Hitachi can receive a performance grant of $29.4 millions to cover costs for site preparation and facilities, subject to approval by the General Assembly.
Gov. Glenn Youngkin stated in a press release that “hardworking Virginians, and a business friendly environment were what brought Hitachi Energy into the Commonwealth.”
Youngkin stated, “Now, following years of success, they are doubling-down on this decision with this landmark South Boston investment.”
The announcement of Thursday follows on from other recent expansions announced by Hitachi Energy. In April, announced an investment of $22.5 million at its Bland & Atkins sites. And in 2022, announced $37 million in South Boston.
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