Construction began June 29 on Hitachi Energy’s $457 million expansion of its manufacturing campus in South Boston, Va., where the company plans to build what it says will be the nation’s largest facility to produce high-power transformers.
The expansion will be built adjacent to the company’s current South Boston campus and will expand domestic production of equipment for transmission, power generation, data centers and other large industrial applications. The campus has been operating since 1968.
“Power transformers are not a niche product; they are essential to literally keep the lights on, supporting everything from homes and hospitals to industrial and advanced manufacturing needs in Virginia and our nation,” said Gov. Abigail Spanberger at the unveiling. “They are critical to strengthening and modernizing our power grid as energy demand continues to grow.”
The scope includes a more than 300,000-square-foot manufacturing building, with assembly bays taller than 120 feet and an overall building height of about 130 feet to accommodate a 375-ton crane for mounting and moving high-power transformers, according to Halifax County land use records. Finished units will be shipped by rail from the rear of the facility, allowing large equipment to move directly onto the rail network.
The project also includes a four-story office component and a redesigned site circulation that separates employee traffic from heavy industrial shipments, according to testimony at the public hearing.
Beyond the manufacturing complex, the project includes off-site infrastructure improvements.
County documents show Virginia Department of Transportation upgrades are planned to the existing signalized entrance, while a new road connecting the back of the facility to the industrial park will direct heavy truck traffic away from the main employee entrance. The county’s rezoning application also documents Hitachi’s acquisition of adjacent parcels needed for the expansion.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new intelligent AI search tool.
Ask ENR →
Company officials say the project is expected to create 825 jobs, nearly doubling employment at the facility. Greg Callahan, senior vice president of transformers at Hitachi Energy North America, said the company plans a broad workforce development effort as hiring ramps up.
“We fully plan to participate in a comprehensive training program,” he said at the start. “The other key aspect is when we recruit people, they have to have a place to live. So housing is a critical element here in this local community.”
The expansion improves local infrastructure and increases the workforce
The South Boston expansion is part of Hitachi Energy’s previously announced $1 billion-plus American manufacturing initiative.
An aerial view shows Hitachi Energy’s existing South Boston, Va., manufacturing campus and the surrounding industrial area where the company is expanding production of high-power transformers.
Image courtesy of Halifax County.
According to the Virginia Economic Development Association, the incentive package includes a performance-based employment and principal investment grant of up to $29.4 million, with the Virginia Talent Accelerator program providing staffing and customized training. The county also pledged 10 acres for workforce housing and waived permit fees and utility hookups.
The expansion of manufacturing has also led to a parallel investment in housing.
Spanberger said the state paired the manufacturing project with workforce housing because “homeless jobs don’t always stick.”
He said the initiative includes 136 apartments and townhomes, with support from the Virginia Workforce Housing Investment Program, Virginia Housing, the Virginia Tobacco Regional Revitalization Commission and the Southern Crescent Regional Commission. Halifax County committed more than $8 million in public funding, donated land and waived local taxes.
RELATED
Trump implements Defense Production Act to address grid equipment bottlenecks and energy projects
The expansion required multiple local approvals beginning in late 2025, including a height variance and the rezoning of additional properties from agricultural to industrial. During a variance hearing, project engineer Clay Lewis of Haines Gibson & Associates told county officials that additional building height was needed to manufacture the larger transformers planned.
The project generated relatively little organized opposition during the public review process, according to Halifax County Board of Supervisors records.
Callahan acknowledged that the project is running “a little behind where we want it to be,” but said the expansion remains on target for completion in 2029. Hitachi Energy did not immediately respond to ENR’s requests for additional project details.
