Hitachi Energy invests an additional $270 million CAD ($195 million USD) to expand large power transformer manufacturing capacity in Varennes, Quebec

Hitachi Energy, the world’s leading electrification company, today announced an additional $270 million CAD ($195 million USD) investment to expand its large power transformer manufacturing facility near Montreal, Canada. This major investment, which builds on an ongoing expansion announced in 2024, will nearly triple the site’s annual production capacity, reinforcing Canada’s role as a beacon of clean-energy manufacturing for the world.

This effort is part of Hitachi Energy’s $9 billion USD global investment program, the largest in the industry to expand manufacturing capacity, R&D, and engineering. This latest expansion will create approximately 500 new jobs and bring significant benefits to the local economy. With more than half of the value of goods sold from Varennes typically sourced locally, the investment will spur further economic development in the region.

Transformers are a critical component of the energy value chain, enabling efficient transmission and distribution of electricity. They support applications such as large-scale transmission systems, data center operations, grid interconnections, integration of renewable energy, and the electrification of transportation, all of which are essential to the decarbonization of energy systems. In Canada, large power transformers are also vital in supporting energy-intensive industries such as mining, aluminum production, and steel manufacturing, which are foundational to the national economy.

The Varennes expansion is a significant step in Hitachi Energy’s global plan to increase transformer production capacity to meet growing mid- and long-term customer needs in the energy transition.

The Varennes facility is one of the largest manufacturers of HVDC transformers in the world and is also CSA N299-certified for nuclear quality assurance. These capabilities position the site to address unprecedented demand for transformers driven by the expansion of nuclear power generation, increased interconnection between jurisdictions, the refurbishment of existing infrastructure, and surging electricity demand from data centers and continued growth in renewable sources.

The project will significantly improve production flow. Planned improvements include a state-of-the-art assembly line and the addition of two flexible core and winding feeding lines, ensuring greater production continuity. The factory fully integrates Hitachi Energy’s TrafoStar™ transformer technology platform, which harmonizes transformer design, manufacturing processes, and quality control measures across all power transformer factories worldwide.

As the world’s leading electrification company and the largest transformer manufacturer, Hitachi Energy is advancing grid modernization with industry-leading solutions and a commitment to achieving carbon-neutral operations by 2030.