Hitachi Energy’s latest manufacturing investment sends a clear signal to the global power sector: transformer capacity has become critical infrastructure. 

The CWIEME Berlin exhibitor has announced a $300 million investment in China to expand power transformer and component manufacturing. The programme includes a new power transformer factory, a new ultra-high voltage bushing facility and a digital production line for tap changers. It forms part of Hitachi Energy’s wider $9 billion global investment plan. 

The investment comes as electricity demand rises across data centres, AI infrastructure, mobility and industrial applications. For grid operators and the transformer supply chain, that growth creates a practical challenge: building enough equipment, quickly enough, without compromising quality or reliability. 

Capacity is now a strategic issue 

Transformer manufacturers are already balancing growing order books with long investment cycles, material constraints, skilled labour shortages and testing capacity. For TSOs and DSOs, long transformer lead times can translate directly into grid delivery risk and slower connections. 

Hitachi Energy’s response is significant because it addresses capacity across several parts of the transformer value chain, rather than focusing solely on final assembly. The company says its investment will expand manufacturing capacity and expertise in China while strengthening the resilience of its global transformer value chain and helping to ease supply bottlenecks. 

That reflects a wider reality for the sector. Transformer availability depends on an interconnected supply chain spanning electrical steel, copper, insulation, windings, bushings, components, machinery, testing and manufacturing technology. CWIEME Berlin brings these parts of the value chain together with transformer OEMs and the grid operators responsible for delivering critical infrastructure. 

Manufacturing investment must keep pace with grid investment 

Grid expansion is often discussed in terms of new transmission lines, substations and renewable connections. But those projects depend on the manufacturing capacity behind them. 

For grid operators, equipment bottlenecks and volatile transformer lead times can increase the risk of project delays. For OEMs, expanding factory throughput means making decisions around automation, workforce, materials, testing and production capacity while maintaining reliability. 

Hitachi Energy’s investment demonstrates the scale at which major manufacturers are responding. 

It also highlights why closer connections across the supply chain matter. Capacity cannot be solved by OEMs alone. Material suppliers, component manufacturers, machinery providers, technology specialists and grid operators all have a role in reducing delivery risk and building greater resilience. 

Bringing the transformer value chain together 

These are exactly the conversations moving to the centre of CWIEME Berlin. 

As the global meeting place for the electrical manufacturing supply chain, CWIEME Berlin connects the people building transformer capacity with those specifying, sourcing and operating the equipment. From transformer availability and manufacturing bottlenecks to material security, factory throughput and grid delivery, the focus is increasingly on turning investment into infrastructure that can be delivered at scale. 

Hitachi Energy’s latest commitment is another clear indication of where the industry is heading: more capacity, stronger supply chains and greater collaboration from factory to grid. 

As electrification increases pressure on power systems worldwide, manufacturing is no longer behind the grid story. It is central to it.