Changing Power Structure Brings Growth to North American Transformer Manufacturing Sector

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Researched by Industrial Info Resources (Sugar Land, Texas)--The manufacturing of power transformers in the U.S. and Canada is showing a marked increase, largely caused by the numerous projects to upgrade the country's power grid to incorporate wind power and other alternative energy sources. Electric transformers, which are used by utility companies, power plants and other industries, steps high-voltage current up and down between generating facilities and transmission lines. Industrial Info is currently tracking 20 active transformer manufacturing projects in the U.S. and Canada, with a combined total investment value of $464 million dollars. The Southeast region of the U.S. is particularly active in this sector, with six transformer manufacturing projects totaling $332 million.

Click on image at right for a breakdown by market region of active power transformer manufacturing projects.

Waukesha Electric Systems is under way with construction on a $90 million expansion of its power transformer manufacturing plant in Waukesha, Wisconsin. Construction on the additional 140,000 square feet began in December of last year and is expected to be completed by the spring of 2012. The expansion will increase the plant's size by 50% and raise the company's manufacturing capacity of large power transformers, which will include rates of up to 500 megavolt-amperes, representing some of the largest power transformers available.

Mitsubishi Electric Power Products Incorporated (Warrendale, Pennsylvania) is preparing to begin construction on a $208 million transformer manufacturing plant in Memphis, Tennessee. Plans are to construct a 330,000-square-foot building that will enable the company to manufacture 400-ton, boxcar-sized electric transformers. The company will also construct a 40,000-square-foot office building on a 97-acre site. An additional 49 acres will be purchased for future expansion. A 4,100-foot rail extension will be constructed to prepare the site for the new plant. Construction is anticipated to begin in late September or early October this year. Approximately 275 new jobs will be created once the plant is operational.

The transformer industry is expected to sustain high growth and rapid development for years, as the construction of power grids and transmission projects, particularly for renewable energy sources, continues to strengthen.

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