Hitachi Energy plans $528M Mississippi transformer factory

Hitachi Energy, a wholly owned subsidiary of Hitachi, Ltd. plans to build a new $528 million transformer manufacturing facility in Gallman, Mississippi, creating over 700 jobs. The Mississippi facility will be the cornerstone of Hitachi Energy’s around $1.5 billion U.S. manufacturing expansion program, the largest in the industry, increasing domestic production of transformers and other critical grid infrastructure to meet rapidly growing energy demand across the country.

The new facility in Mississippi, Hitachi Energy’s largest single investment in the United States to date, deepens a long-term commitment to American manufacturing rooted in more than a century of building and strengthening the U.S. power grid, a heritage spanning Westinghouse Electric, ABB Power Grids, and Hitachi. The investments will help meet growing American energy needs through the expansion of U.S. manufacturing, contributing to the advancement of Hitachi’s efforts in support of the strategic investment initiatives promoted by the governments of Japan and the United States. It also aligns with the Trump administration’s and Governor Reeves’ goals to promote domestic access to these critical grid technologies.

The new factory in Gallman will be approximately 6.5 miles (ten kilometers) from Hitachi Energy’s existing Crystal Springs facility. At over twice the size of the current plant, it will more than double capacity. Construction is expected to begin late this year, with transformer production at the facility scheduled to start in 2029. Once the new factory is completed, transformer production will transition from Hitachi Energy’s existing Crystal Springs facility to Gallman.

“Demand for electricity is growing rapidly, and the grid must grow with it,” said Andreas Schierenbeck, CEO, Hitachi Energy. “This investment in Mississippi, our largest ever in the U.S., reflects our long-term commitment to American manufacturing and building the grid infrastructure that will help power America’s growth for decades to come. We are pleased to work with the Trump administration and Governor Reeves to support investment in American manufacturing at a pivotal time for U.S. energy security.”

The project will significantly increase output of power transformers manufactured in Mississippi. The additional capacity will help address rapidly growing demand for electricity across the U.S., driven by the expansion of advanced manufacturing, industrial electrification, data centers, and other energy-intensive industries, as well as the continued modernization and expansion of the nation’s power grid.

“This is truly a massive win for Mississippi and the United States,” said Mississippi Gov. Tate Reeves. “Hitachi Energy could’ve made its largest investment in America anywhere in the country – but the company chose Mississippi. Mississippi’s momentum is growing stronger every day, and it is our people who are building the future of American energy infrastructure. This $528 million investment will create over 650 new jobs while expanding the domestic manufacturing capacity our country needs to meet growing demand. Mississippi is proud to play a leading role in powering America’s future.”

The investment reflects Hitachi Energy’s collaboration with federal, state, and local leaders to strengthen domestic manufacturing, grow the skilled workforce, and expand the critical infrastructure needed to meet rising electricity demand. The partnership will also help ensure continued economic development and long-term investment in Mississippi and the U.S.

The project follows several major Hitachi Energy manufacturing investments across the country. In June, the company broke ground on a $457 million expansion of its large power transformer factory in South Boston, Virginia, which will be the nation’s largest of its kind and create 825 new jobs. Last August, Hitachi Energy announced a $106 million expansion in Alamo, Tennessee, that will increase production of critical transformer components and create more than 100 jobs, and last year, the company announced a $70 million expansion of its facilities in Westmoreland County, Pennsylvania, which focuses on the production of high-voltage equipment for the grid.

Together, these projects represent a historic investment in U.S. transformer manufacturing, creating over 1,600 jobs. This broader footprint will support the modernization of the nation’s power infrastructure, enhancing grid resilience, reliability, and security.

Production will continue at Hitachi Energy’s existing Crystal Springs facility until the new Gallman factory is complete. Once transformer production transitions to Gallman, the Crystal Springs building will continue to be used for warehousing, training, or other operational needs, reinforcing Hitachi Energy’s long-term and sustained commitment to the region and its local workforce.