Hitachi Energy has inaugurated the expansion of its transformer factory in Bad Honnef, Germany, increasing production space at the site to 15,000 square meters as the company moves to meet accelerating demand for critical grid infrastructure.

The facility, which has been in operation since 1906, carries more than 120 years of industrial heritage and is one of Hitachi Energy's key transformer production sites in Europe.

Official inauguration attended by senior political and business figures

The expanded facility was officially inaugurated in the presence of Hendrik Wüst, Minister-President of North Rhine-Westphalia; Andreas Schierenbeck, CEO of Hitachi Energy; Bruno Melles, CEO of Hitachi Energy's Transformers Business Unit; and Yoshitaka Tsunoda, Consul General of Japan in Düsseldorf.

The ceremony featured the symbolic "flipping of the switch" alongside other attendees, including Dr. Markus Krebber, CEO of RWE; Philipp Herzog, Mayor of Bad Honnef; Plant Manager Kay Kruse; Jonathan Grunwald, Member of the State Parliament of North Rhine-Westphalia; and Sebastian Schuster, District Administrator of the Rhein-Sieg District.

Investment doubled since initial announcement

The expansion was originally announced in February 2024 and includes the construction of a new production hall, the installation of new machinery, and the modernization of the existing factory.

According to CEO Andreas Schierenbeck, the company began expanding and modernizing the century-old factory in 2024 with an initial investment of more than USD 33 million and has since more than doubled its financial commitment to the site.

Schierenbeck described the increased investment as a strong vote of confidence in the site's people and its future, adding that with conditions favoring the expansion of transformer manufacturing in Germany, the company could do even more.

"The transformer industry is a strategic enabler of electrification, energy security, and economic growth; the capabilities we are building here will help ensure that Germany remains at the forefront of Europe's energy future," he said.

The Bad Honnef expansion forms part of Hitachi Energy's broader effort to increase its global transformer manufacturing footprint as electricity demand grows and power grids are expanded and modernized.

Globally, the company is investing more than USD 9 billion in its manufacturing, people, and technology, including expanding transformer manufacturing capacity.

Rising electricity demand drives grid investment

The company cited electrification across industry, transport, and other sectors, together with the rapid growth of digital infrastructure and the integration of renewable energy, as forces driving electricity demand and increasing the need for stronger, more resilient power grids.

Large power transformers are essential to this infrastructure, enabling electricity to be transmitted efficiently across the grid and providing reliable power to industries, cities, data centers, and other critical infrastructure.

The factory in Bad Honnef manufactures large power transformers that step voltage levels up or down to enable the efficient transmission and distribution of electricity, making them a critical component of the power grid.

As electrification and digitalization accelerate, including the rapid expansion of AI and data center infrastructure, Hitachi Energy said additional grid capacity and transformers will be essential to deliver the reliable electricity needed to support economic growth and the evolution of the world's energy system.

Bruno Melles, CEO of the Transformers Business Unit, framed the expansion within the broader energy transition.

"The energy transition is no longer a future ambition; it is unfolding right now. Every new renewable connection, every grid upgrade, and every electrification project depends on robust power infrastructure," he said, describing the company's commitment as standing alongside customers with the technology, expertise, and manufacturing capacity they need "at one of the most consequential moments in the history of the energy sector."

Regional and political significance

Minister-President Hendrik Wüst called the investment an example of expanding competitiveness in Germany and a strong signal for the industrial location of North Rhine-Westphalia, which he described as a central location for the German energy supply.

"A plant with 120 years of history is now being expanded for the future. This shows that good and targeted energy policy opens up new opportunities for added value and good jobs in our strongly industrialised state," Wüst said.

He added that long-term security of supply requires not only more electricity but also the technology that carries it to where it is needed, and pointed to the production of this key technology in Bad Honnef as an example of the state's strong economic partnership with Japan.

For its part, Hitachi Energy says the expansion reinforces its commitment to strengthening the manufacturing base required to meet growing demand for critical grid technologies, building on a site that, in the company's words, has helped power Europe's progress for over 120 years.

Staying Ahead of Germany's Power Grid Transformation: What You Might Be Missing

How many power projects across Germany are advancing right now without you knowing about them? From offshore wind interconnections to grid modernization programs, the pace of infrastructure development makes manual tracking nearly impossible.

Missing a single tender notice or contract award can mean losing a competitive advantage that took years to build. Industry leaders no longer rely on fragmented news sources; they depend on structured, real-time project intelligence.

The Global Project Tracking (GPT) platform by Blackridge Research delivers comprehensive coverage of the German power sector, giving you early visibility into every stage of the project lifecycle.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Book a Free Demo today and discover how the Global Project Tracking (GPT) platform by Blackridge Research can transform your market intelligence across Germany's evolving power landscape.