A manufacturer of electrical transformers will invest $22.5 million to expand its Bland County facility and add a warehouse in Smyth County, creating 120 new jobs, the governor’s office said Friday.
Hitachi Energy currently employs 450 people in Bland County, where it produces medium-voltage transformers that help regulate the flow of electricity on the U.S. power grid as well as in specialized industries such as data centers and renewable energy, Gov. Glenn Youngkin said in a news release.
The company has been operating in Bland since 1972.
Of the 120 new jobs, 80 will be added at the Bland facility and 40 at the new Atkins site in Smyth County, said company spokesperson Kurt Steinert.
The 77,000-square-foot Atkins warehouse was home to a ZF TRW Automotive facility until it closed in 2022.
Steve McKinney, Hitachi Energy’s senior vice president and head of transformers for North America, said in the governor’s news release that the expansion “represents a major milestone in our commitment to building resilient energy infrastructure in the U.S.”
“Virginia has been an essential part of our manufacturing story for over 50 years, and this expansion reflects our confidence in the region’s skilled workforce and strong support for innovation,” McKinney said.
The Atkins location will be used as a warehouse and for core cutting, which is the process of cutting steel sheets and other materials used in the transformer’s core. The core facilitates the transfer of energy that allows a transformer to adjust voltage levels as needed.
Recruiting has begun, and the expansion is underway, with work expected to be completed by the end of 2026, Steinert said.
Bland and Smyth counties worked with the Mount Rogers Regional Partnership, a regional economic development organization, and Hitachi Energy to secure the project for Virginia.
“This is excellent news for Bland County,” Del. Will Morefield, R-Tazewell County, said in the news release. “We are grateful to Hitachi Energy for staying committed to the region. The creation of 120 new jobs is much needed and I am confident this will ensure that we will have more opportunities to further diversify the economy in Bland.”
Smyth County Board of Supervisors Chairman Charles Atkins said in the news release that the county is “excited to see this regional expansion bring new opportunities to our community.”
“This project represents the kind of collaborative economic development that strengthens our entire region and showcases what’s possible when we invest in strong partnerships,” he said.
In 2021, Hitachi Energy completed a $6.2 million expansion at its Bland site that increased production capacity and added 40 jobs.
In December 2022, the company announced it would invest $37 million to expand and modernize its transformer manufacturing facility in South Boston, which has been operating since 1968.
Friday’s news about Hitachi Energy marks the second announcement this month of a transformer manufacturer planning to expand. On April 17, Delta Star said it would invest $35 million to expand its Lynchburg facility, creating 300 jobs.