Siemens Energy to start large power transformer production in the US
Siemens Energy is expecting to start US production of big industrial power transformers in 2027.
Image for illustration purposes. (Image credit: Mo Photography Berlin/shutterstock.com)
USA, Charlotte: Siemens Energy is expecting to start US production of big industrial power transformers in 2027 and can further expand its Charlotte, NC, factory if demand, and import tariffs, stay high, senior executives at the group said. The company makes more than a fifth of its sales in the U.S. market, where it employs around 12% of its roughly 100000 staff and runs several production plants that make everything from wind and gas turbines to electricity grid components.
More than 80% of large power transformers (LPT) are currently imported into the United States, according to board member Tim Holt. This is why the company is expanding its Charlotte site, where the first local transformers are expected to run off the factory lines in early 2027. There is enough space to expand further if needed.
The company expects a total of $2 trillion of investment in the dated US grid by 2050, fuelled by an expected surge in power demand due to data centres necessary for AI technology.
“This time we expect a longer boom cycle for grid expansion than the usual two to three years. The market is very positive right now,” Holt, who is in charge of Siemens Energy’s US business, said at a company event.
The company said in May it expected US import tariffs to cut less than €100 million ($117 million) from group net profit in 2025, comments made before Trump threatened 50% levies on EU goods if a deal cannot be agreed by July 9.
Source: Reuters
