Mitsubishi Electric Bolsters Energy System Production in U.S. and Japan

Mitsubishi Electric Corporation (TOKYO: 6503) has announced a significant investment of approximately USD 110 million (approx. 16 billion yen) to strengthen its energy system production capabilities in both the United States and Japan. This strategic move is driven by the increasing demand for transmission and distribution grid products as nations worldwide transition towards renewable energy and decarbonization goals.

The investment comprises two key components: a USD 86 million (approx. 12 billion yen) commitment by Mitsubishi Electric's U.S. subsidiary, Mitsubishi Electric Power Products, Inc. (MEPPI), and a complementary investment in a Japan-based factory. MEPPI will construct a new Advanced Switchgear Factory in Western Pennsylvania, marking its first new manufacturing facility in over a decade. This state-of-the-art facility will initially produce both vacuum and gas circuit breakers, eventually transitioning to predominantly manufacturing vacuum circuit breakers to meet the evolving needs of U.S. electric utilities and support the nation's decarbonization efforts. Upon reaching full capacity, the facility is expected to employ more than 200 full-time workers.

In addition to the new factory, MEPPI will expand and upgrade its existing facilities in Warrendale, PA, with investments in power electronics and test labs. Mitsubishi Electric will also invest in its Transmission & Distribution Systems Center in Japan to improve the productivity of switchgear, including key components. These investments aim to meet the rapidly growing demand for electricity and contribute to stable electric power supply by enhancing production capabilities and supply chains in the energy system business.

Mitsubishi Electric's commitment to innovation is evident in its plans to implement advanced software and automation technologies in the new switchgear factory and existing operations. This will optimize operational efficiency and maintain the company's commitment to product quality, ensuring that it meets the growing energy needs of the U.S. while staying at the forefront of technological innovation.

The Commonwealth of Pennsylvania is supporting MEPPI's expansion by offering a $4 million Redevelopment Assistance Capital Program (RACP) grant and a $2.75 million Pennsylvania First grant. Governor Josh Shapiro emphasized the strategic importance of these investments, stating that they will create good-paying jobs for Pennsylvanians and contribute to the state's economic growth and opportunity.

Mitsubishi Electric's dual investment strategy balances local market demands and global supply chain optimization, allowing the company to capture growth in both U.S. and Japanese renewable energy markets. By coordinating production and R&D efforts between the U.S. and Japan facilities, Mitsubishi Electric can leverage synergies and cost savings to maintain a competitive edge in the global market.

In conclusion, Mitsubishi Electric's investment in advanced switchgear and power electronics technologies positions it to capture growth in both U.S. and Japanese renewable energy markets. By strengthening its production capabilities and supply chains, the company is well-equipped to meet the rapidly growing demand for electricity and support the nation's decarbonization efforts. With a commitment to innovation and quality, Mitsubishi Electric is poised to play a significant role in the global energy transition.