Dive Brief:

• Mitsubishi Electric Power Products, the U.S. subsidiary of Mitsubishi Electric, is investing $86 million in advanced switchgear production and power electronics in the U.S., the company announced earlier this fall.
• The company is building a 160,000-square-foot factory in the Pittsburgh region. The plant will initially produce vacuum and gas circuit breakers, transitioning to primarily vacuum circuit breakers as operations expand. The factory will create over 200 jobs when fully operational.
• The subsidiary will also upgrade its existing Warrendale, Pennsylvania, facilities, focusing on power electronics and test labs, according to the release.

Dive Insight:

The company’s investment is in response to growing demand for transmission and distribution grid products as the U.S. makes progress on its renewable energy and decarbonization goals, the company stated.

“Our switchgear and power electronics solutions are essential for meeting the growing demand for electricity, from powering homes and businesses to supporting the rapid expansion of data centers,” Tricia Breeger, President and CEO of Mitsubishi Electric Power Products, said in a statement. 

“Global electricity demand is expected to rise 3.4% annually through 2026, up from 2.2% in 2023, driven by growth in emerging economies, ongoing electrification of homes and vehicles and data center expansion,” according to global investment firm Brookfield.

The new Pennsylvania factory and existing facility will implement advanced software and automation technologies to improve efficiency and maintain high product quality.

The state government is providing financial support, including two grants worth nearly $7 million to aid the company's expansion.

Mitsubishi Electric is expanding its plans with a new factory in Japan as well, bringing the parent company’s total investment to about $110 million. 

The Japan-based company isn’t the only one trying to keep up with the increasing demand for electricity infrastructure. Hitachi Energy is investing $155 million to expand its North America manufacturing capacity across three plants, including $60 million to expand its Pennsylvania high-voltage switchgear and breakers factory.

Vertiv has been increasing its capacity for infrastructure solutions, switchgear and busbar businesses through manufacturing expansions in the U.S. and abroad, the company said in October. The company operates a switchgear and busbar manufacturing facility in Anderson, South Carolina.