Features | 26.08.2025 | 4 min read
New plant increases the local capacity to produce high-performance transformers
The project will generate 450 new jobs and will have a direct impact on the economic and social development of the Vale do Paraíba region
Marking a new and important chapter in its history in Brazil, Hitachi Energy will initiate construction of a new state-of-the-art power transformer factory in Pindamonhangaba, São Paulo. This strategic investment is part of the company’s broader $200 million commitment to expand capacity and accelerate the energy transition in the country. The new project is part of a more than $9 billion USD global investment program, the largest in the industry worldwide, under which Hitachi Energy is expanding its manufacturing capacity, R&D, engineering, and partnerships to power the world’s energy system to be more reliable, secure, and resilient.
The new unit represents a strategic milestone in the company's expansion in Brazil, with existing plants in Guarulhos (SP) and Blumenau (SC), and in Latin America, combining high technology, production efficiency, and a commitment to sustainability. With a built area of 46,300 m² in the first phase and an expectation of generating 450 direct jobs and approximately 1,800 indirect jobs, the factory, along with the expansion of the Guarulhos unit, will double the company's production capacity in the country to serve national and global markets, reinforcing the company's commitment to Brazil’s economic and sustainable development.
Born in Pindamonhangaba, the Vice President of Brazil and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin, highlighted the importance of the unit for the region and for the country:
The new Hitachi Energy unit in Pindamonhangaba represents a strategic investment for Brazil, expanding the national industry’s capacity in equipment essential to the energy transition, while generating jobs and income for the region. The new project is fully aligned with the goals of Nova Indústria Brasil, our policy for a more sustainable, technological, and inclusive industry.
This investment goes beyond the construction of a new plant and represents a strategic step in our global leadership in energy transition, one of the central themes of COP 30. We are joining efforts with governments, companies and experts to accelerate this transformation, ensuring a safer, more sustainable and affordable energy supply for communities in Brazil, as we do around the world, in line with our Purpose to inspire the next era of sustainable energy.
Expected to be completed by mid-2028, the facility marks a strategic step in the development of Brazil’s energy infrastructure. Transformers are essential for the operation of power grids and are key components for data centers, large-scale industrial applications, and the expansion of renewable energy power generation. At a time when artificial intelligence is rapidly advancing in Brazil and around the world — demanding robust electrification systems – local production of high-performance transformers becomes even more critical to ensure stability, efficiency, and capacity for growth. In addition, the factory will represent a significant boost to the Vale do Paraíba region, with the promotion and training of the local workforce in partnership with training and continuing education institutions.
The new plant represents a great advance for our regional operations. There is no energy transition without transmission, and as we expand power generation to meet increasing demand, we need to develop new electrical infrastructures that integrate renewables and other clean sources, as well as modernize and optimize existing grids to make them more robust and reliable.
The new factory will be fully integrated into Hitachi Energy’s TrafoStar™ transformer technology platform, which harmonizes transformer design, manufacturing processes and quality control measures across all Hitachi Energy power transformer factories worldwide.
The new unit was designed to meet the most demanding energy sector requirements, both in Brazil and in international markets. With automated processes and global quality standards, we reinforce our ability to offer robust, efficient, and sustainable solutions to our customers.
With highly automated processes and modern infrastructure, the Pindamonhangaba unit will follow the strictest international quality and safety standards. One of the major differentiators is the plant’s design from the outset to obtain LEED (Leadership in Energy and Environmental Design) certification, granted to sustainable and high-performance environmental projects. Among the initiatives adopted are:
Use of low environmental impact materials;
Rainwater reuse system;
Use of renewable energy sources and natural lighting for greater energy efficiency;
Waste management and emissions control.
Hitachi Energy Connection Event
The project's groundbreaking ceremony will take place on Tuesday, 26, and will feature a program featuring the presence of energy and sustainability experts.
One of the highlights of the Hitachi Energy Connection event was the panel discussion, “Journey to COP30: What is the importance of the private sector and its investments to achieve a just energy transition?”. The debate will feature Chief Executive Officer of ABEEólica (Brazilian Wind Energy Association) and special envoy for Energy for COP30, Wilson Ferreira Júnior, former CEO of CPFL Energia, Eletrobras and Vibra Energia, and current Chairman of the Board of Matrix Energia; and Gustavo Ataíde, National Secretary for Energy Transition and Planning. The event, which will bring together representatives of major energy companies, associations, authorities, and regulatory bodies, will provide a preview of some of the topics to be discussed at COP30, which takes place in November, in Pará.
Hitachi Energy in Brazil
The company’s solutions are essential for the operations of more than half of the solar and wind farms in Brazil, making it an essential part of the energy transition in the country. It has also supported transformative energy infrastructure projects, including the Itaipu, Rio Madeira, and Belo Monte power plants, to enable large-scale hydroelectric generation. The company also acts as a partner in grid connections and solutions for major industrial projects and has been a key partner to bring digitalization to the energy sector in the country, an essential step to achieve a more sustainable, reliable, flexible, and affordable energy system. One example of this is the first 500 kV digital substation in South America.
Over recent years, the company has significantly expanded its presence and investments in Brazil, growing its team by over 50 percent in the last five years, reflecting an average annual growth of 25 percent in its operations. It currently employs over 1,600 people in the country.
Hitachi Energy is also the founder and sponsor of the Amanhecer Institute, which promotes social inclusion and citizenship through education, benefiting more than 400 children and 2,000 people in total.
