Italy-based Westrafo to build its first US transformer plant | Utility Dive

Oct 26, 2024

The Ohio medium transformer manufacturing facility will have an output of 12 GW per year starting in 2027.

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Westrafo’s transformers have different applications depending on customers’ needs, including photovoltaic, wind, hydrogen and energy storage, according to its website.

The company has been exporting products to the U.S. since 2019 and has more than 7 GW of installed capacity in the country already, according to a JobsOhio press release.

Westrafo has production facilities near its Vicenza, Italy, headquarters and in Tema, Ghana. Last July, Westrafo set up its North American subsidiary, Westrafo America, and created a customer care branch for local support in the sales phase and after-sales service as part of the company's global expansion plans.

While the transformer industry faces an ongoing shortage, several global factors have led to a higher demand for transformers in the U.S.

“The expected growth is due to various factors, such as the continual rising consumption in electricity, the growing demand for replacing or refurbishing aging transformers, the investments in infrastructural development initiatives, and the increasing prominence of renewable energy sources,” Alberto Cracco, CEO of Westrafo, said in a March Easy Engineering interview.

Yet shortages of skilled labor and critical materials, often sourced from global markets, have alsocreated manufacturing delays for electrical components like transformers, according to the National Electrical Manufacturers Association.

The Italy-based company isn’t the only one trying to fix the domestic transformer shortage. Germany-based Siemens Energy is building its first U.S. large power transformer manufacturing facility in North Carolina, set to start production in 2026.

The Trotwood project is contingent upon the approval of state and local incentives. The Ohio Tax Credit Authority approved a 1.778%, 10-year job creation tax credit for the project, according to their website.

Ohio is investing heavily in renewable energy manufacturing across the state. The Buckeye State sits as one of the top 10 places in the country for the highest amount of clean energy manufacturing investments, according to E2 data.