Hitachi Energy has started construction on a major expansion of its South Boston campus in Virginia, US, moving forward with plans to build a new facility for producing large power transformers.

This initiative forms part of a previously announced $457m (SFr369.8m) investment that is expected to create approximately 825 additional jobs in Halifax County.

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The company held a groundbreaking ceremony attended by Virginia Governor Abigail Spanberger, Congressman John McGuire and Senator Mark Warner, along with other state and local officials.

The new facility will manufacture large power transformers, equipment considered crucial for the country’s electric grid infrastructure.

According to Hitachi, these transformers will help support transmission, generation, data centres and industrial clients across the US.

With this expansion, Hitachi Energy’s South Boston site, which currently employs around 850 people and has operated since 1968, will nearly double its local workforce.

The company noted that the new project builds on almost six decades of manufacturing in Southside Virginia and is a central part of the more than $1bn it has invested in US grid equipment manufacturing.

A large proportion of that investment is being directed to Virginia, reinforcing the state’s role in advancing the nation’s energy security.

The project includes a focus on the workforce, with plans for amenities such as on-site fitness and recreational facilities, a cafeteria, a health clinic and shared spaces.

Spanberger said: “This groundbreaking is a monumental event for Southern Virginia and the entire Commonwealth. Hitachi Energy’s $457m investment and the creation of 825 new jobs will accelerate the region’s economic trajectory while strengthening Virginia’s leadership in advanced manufacturing.

“By producing more critical large power transformers here at home, we are not only supporting economic growth but also securing the infrastructure needed to power our future.”

The company emphasised that the large power transformers produced at the facility are vital for supporting a reliable and resilient electric grid as energy demand rises nationwide.

In April, Hitachi Energy was awarded a contract to supply automation equipment for the 900MW Nordseecluster B offshore wind project in Germany, which is operated by RWE and Norges Bank Investment Management.