Hitachi Energy will invest $70 million in Türkiye to expand its transformers manufacturing capacity, the Swiss-based supplier of power technology and electrification announced on Thursday.
The investment will be directed toward its plant in Dilovası district of northwestern Kocaeli province, where production capacity is expected to increase by 70%, the company said in a statement.
The expansion is also projected to boost the company's workforce in Türkiye by 30%, the statement said. The company currently employs more than 1,100 people in Türkiye, according to its website.
Hitachi Energy said demand for electricity in Türkiye, as well as throughout both Europe and Asia, is growing "exponentially" and suggested that the industry and energy infrastructure "simply can't keep up."
"Recent geopolitical volatility has exacerbated supply chain disruption and poses additional concerns from an energy security, accessibility, and volatility standpoint," it noted.
The power transformers facility, one of Hitachi Energy's major production hubs, will undergo a significant upgrade with the construction of an additional 45,000 square meters of operational space.
The project is scheduled for completion by 2026, the company said.
"The move to the Organized Industrial Zone in Dilovası offers significant advantages, including ease of transportation of transformers due to its proximity to the commercial port," said Yasemin Hoşder Öztekin, country managing director at Hitachi Energy.
"This investment underscores our commitment to supporting the energy transition and meeting the decarbonization needs of our customers."
As part of the investment, employees from the Kartal factory in Istanbul will transition to Dilovası, the company said. Hitachi Energy currently has four factories in Türkiye.
