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Siemens Energy aims to produce US transformers by 2027 and can expand the factory

Senior executives from Siemens Energy said that the company expects to begin production in the United States of large industrial power transformers by 2027. The factory can be expanded if import tariffs and demand remain high.

Siemens Energy generates more than a quarter of its revenue in the U.S., where around 12% its 100,000 employees work. It also runs several production facilities that produce everything from gas and wind turbines to components for electricity grids.

Siemens Energy board member Tim Holt stated that more than 80% (of the so-called "large power transformers" or LPT) - components bus-sized needed to convert voltage for grid transmission – are imported into the United States.

Holt added that there is enough room to expand further, if necessary, at Siemens Energy's site in Charlotte, North Carolina. The first local LPTs will be produced in the early 2027.

The company anticipates that the outdated U.S. grid will require $2 trillion in investment by 2050. This is due to an increase in demand for power, fueled by data centres and artificial intelligence technologies.

This time, we anticipate a longer boom period for grid expansion than usual. Holt, the U.S. Business Manager for Siemens Energy, told a company gathering that "the market is very optimistic right now".

Maria Ferraro, Siemens Energy's chief finance officer, said that the group had a long-term outlook on the U.S. Market. This is at a moment when many firms are re-evaluating their presence in the U.S. after President Donald Trump’s trade war.

"Do we alter our approach or tactic to the U.S.?" Ferraro replied: "I would say no because we have a strong base there, and it's a major market for us."

Siemens Energy stated in May that it expected U.S. tariffs to reduce the group's net profit by less than 100 millions euros ($117million) in 2025. This was before Trump threatened 50% tariffs on EU products if an agreement could not be reached by July 9.

Ferraro added that "any large change in tariffs would require a re-evaluation of our estimated impacts."

(source: Reuters)