McAllen EDC helps bring a $70 million Hitachi Energy factory to Reynosa

MCALLEN, Texas – McAllen Economic Development Corporation has announced that Hitachi Energy is making a significant investment in Reynosa.

A new $70 million distribution transformer factory in the city will bring 350 jobs to the region.

In a posting on social media, McAllen EDC said the investment marks a “significant milestone in our journey to enhance manufacturing opportunities in our vibrant community.”

According to the post, the MEDC team has been “hard at work behind the scenes to bring this project to life.”

The social media post stated: “From site selection to construction and local team development, each step has been a collaborative effort. A huge thank you to Hitachi Energy and the team from JLL Mexico for your trust and commitment to investing in our region.”

The social media post added: “We’re proud to support Hitachi Energy as they establish their presence in Reynosa, and we look forward to working closely with their team to ensure the project’s success. Stay tuned for more updates as we embark on this exciting venture together.”

Mark Garcia, executive vice president of McAllen Economic Development Corporation, told the Rio Grande Guardian:

“We are thrilled by the announcement made this morning by Andreas Schierenbeck, CEO of Hitachi Energy, regarding their significant investment in Reynosa. The McAllen Economic Development team has been dedicated to this project since February 2023, and we are proud to witness this milestone.

“This investment not only fosters job creation but also strategically enhances our ability to serve customers across North America.

“As we continue our collaboration with Hitachi Energy, we eagerly anticipate the project’s progress and look forward to a fruitful partnership with the Reynosa site team for many years to come.”

In a press release, Hitachi Energy said it plans to bolster manufacturing capacity in North America with additional investments of over $155 million. It listed three projects:

•                  $60 million USD for the expansion of the high-voltage switchgear and breakers factory in Mount Pleasant, Pennsylvania

•                  $25 million USD expansion in the distribution, power, and traction transformer factory in South Boston, Virginia, and $70 million USD distribution transformer factory in Mexico

•                  Capacity expansion and upgrades to help meet growing demand, creating hundreds of skilled jobs

First news of the investment came at Climate Week NYC.

Hitachi Energy said it plans to construct a new distribution transformer factory in Reynosa. The new transformer factory in Reynosa will address the need for single-phase, padmount distribution transformers used widely in the North American market and will bring 350 jobs to the region.

“Demand for electrical equipment, including transformers and switchgear, is surging globally, and significantly in North America, and one of our highest priorities is making sure that we are growing our capabilities to address our customer’s present and future needs,” said Andreas Schierenbeck, CEO of Hitachi Energy.

“To achieve our goals, we will continue to expand and optimize our footprint in the North American region, leverage our expansive global presence, and prioritize R&D and innovation to drive the energy transition without compromising safety and reliability.”

Schierenbeck said Hitachi Energy’s order backlog has more than tripled since 2020 with the U.S. making a substantial contribution. He pointed out that Hitachi Energy has added over 8,000 employees between 2020-2023, including more than 1,200 in the U.S. He said that in North America, Hitachi Energy has already announced over $150 million USD of investments and future investment plans are under consideration.

Hitachi Energy’s motto is “Advancing a sustainable energy future for all.”

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