New Production Facility Construction Plan Announced
Hitachi Energy, a subsidiary of Hitachi Ltd. operating in the power transmission and distribution business, announced on August 19, 2025, the construction of a new transformer production facility in Pindamonhangaba, São Paulo State, Brazil. Luis Ramos, the company's Chief Communications & Government Relations Officer, stated that "power demand is increasing due to energy transition and artificial intelligence advancements, and transformers are essential for expanding power supply."
Scale and Construction Plan of New Facility
Construction Overview:
- Site Area: 800,000 square meters
- Factory Area: 46,300 square meters
- Completion Target: Mid-2028
Employment Creation Impact:
- Direct Employment: 450 people
- Indirect Employment: Approximately 1,800 people
Support Measures from Local Government
Pindamonhangaba City welcomes Hitachi Energy's investment with the following support measures:
Tax Incentives:
- 15-year exemption from Urban Real Estate Property Tax (IPTU)
- 15-year exemption from Service Tax (ISS)
Administrative Support:
- Expedited construction plan review process
- Support for negotiations with water and electricity concession companies
Export Strategy and Location Selection Rationale
Alexandre Marberro, Head of Transformer Business Unit Latin America Hub at Hitachi Energy, explained that the new facility will be constructed with exports in mind. The selection of Pindamonhangaba was based on excellent access to major ports including Santos Port in São Paulo State and Itaguaí Port in Rio de Janeiro State.
Investment Plan and Relationship with Existing Facilities
Total Investment: Hitachi Energy announced in September 2024 an investment of $200 million for Guarulhos factory expansion and new facility construction. According to the current official release, approximately 80% of the $200 million (about $160 million) is expected to be allocated to the new Pindamonhangaba facility.
Existing Facilities: The company currently operates production facilities in Guarulhos, São Paulo State, and Blumenau, Santa Catarina State. The new facility construction will significantly expand production capacity within Brazil.