Siemens Energy plans to manufacture transformers in US

The German energy giant will invest $150 million to expand its power manufacturing facility in Charlotte, North Carolina, as well as build its first transformer production site there. The investment will create 600 local jobs.

Construction of the new factory is set to begin in 2024, with the first batch of power transformers arriving in early 2026. The current domestic supply in the United States meets only 20% of the country’s major power transformer needs, and procurement lead times are increasing to up to five years.

Siemens Energy executive board member Tim Holt stated: “The US energy transition is in full swing, with $3.9bn pledged to expand and update the US grid within the next two years. However, renewable projects and grid expansion can only happen with the availability of transformers.

“The US market today is mostly served by the Americas and Europe, but as global demand for this critical technology increases we see the long-term potential to increase our US footprint, building on our long-standing presence in North Carolina, where we have had operations since 1969.”

The United States has set a target of reducing emissions by 50% to 52% from 2005 levels by 2030.  Achieving this target requires the decarbonisation of the US system, which is strongly reliant on the availability of power transformers.

Long lead times, supply chain challenges, and a global transformer production deficit have put 25% of global renewable energy projects at danger.

Siemens Energy’s recent investment attempts to address these problems while also increasing domestic transformer production capacity in the US.

In August 2023, the firm said that its wind turbine units will cost up to €2.2 billion, contributing to a net loss of €4.5 billion for the year.

Source: Siemens Energy