MCALLEN, Texas - A senior project manager at Hitachi Energy has thanked McAllen Economic Development Corporation for helping the company’s efforts to open a new distribution transformer factory in Reynosa.
“We couldn't ask for a better partner than the McAllen Economic Development Corporation to help us feel welcome as we enter the region,” said Andrew Nandor.
“Thanks Ralph Garcia and Rafael Angel Ortiz Salazar and the whole MEDC team for your support throughout this project.”
Last week, Hitachi Energy announced plans to build a $70 million distribution transformer factory in Reynosa. The company said 350 new jobs would be created.
Andreas Schierenbeck, CEO of Hitachi Energy, said the transformer factory will address the need for single-phase, padmount distribution transformers used widely in the North American market.
“Demand for electrical equipment, including transformers and switchgear, is surging globally, and significantly in North America, and one of our highest priorities is making sure that we are growing our capabilities to address our customer's present and future needs,” Schierenbeck said.
“To achieve our goals, we will continue to expand and optimize our footprint in the North American region, leverage our expansive global presence, and prioritize R&D and innovation to drive the energy transition without compromising safety and reliability.”
In a statement on social media, McAllen EDC said it has held top level discussions with Hitachi Energy officials “about their anticipated investments and the ambitious work scope they envision for Mexico.”
The statement said MEDC leaders also discussed the “vital support” the Tamaulipas state government is ready to provide.
“Since 2023, our international team has been dedicated to partnering with Hitachi to bring this project to life, and we’re thrilled about the potential ahead,” McAllen EDC said. “Together with Hitachi and the state government, we’re poised to drive growth and innovation in our binational region.”
Mark Garcia, executive vice president of McAllen Economic Development Corporation, told the Rio Grande Guardian:
"We are thrilled by the announcement made this morning by Andreas Schierenbeck, CEO of Hitachi Energy, regarding their significant investment in Reynosa. The McAllen Economic Development team has been dedicated to this project since February 2023, and we are proud to witness this milestone.
“This investment not only fosters job creation but also strategically enhances our ability to serve customers across North America.
“As we continue our collaboration with Hitachi Energy, we eagerly anticipate the project’s progress and look forward to a fruitful partnership with the Reynosa site team for many years to come.”
Hitachi Energy’s new factory will be built at Centinela East Industrial Park in Reynosa, Tamaulipas.
“This 218,116-square-foot facility will be dedicated to the production of electrical distribution transformers, thereby boosting economic development and manufacturing opportunities in the region,” Centinela Property said, in a statement.
“At Centinela East Industrial Park, we have available industrial properties and BTS (built to suit) land. We have the industrial space for your company.”
Ralph Garcia, vice president for international business recruitment at McAllen EDC visited with Hitachi Energy leaders recently.
In a posting on social media Ralph Garcia congratulated Centinela Property.
“Congratulations to our friends at Centinela Property as they celebrate the construction of Hitachi Energy’s new Reynosa facility. This important investment is located in the Centinela Industrial Park in Reynosa and is complemented with some additional speculative projects also underway,” Ralph Garcia said.
“One of the many advantages in Reynosa is available real estate and the ability for developers in the region to respond to important opportunities like this.”
Also visiting with Hitachi Energy officials was Ninfa Cantú Deándar, secretary of economic development for the State of Tamaulipas.
“It gives me great pleasure to share excellent news: today in McAllen we met with directors of Hitachi Energy, a world-leading company, who announced that they will invest $70 million in Tamaulipas to build a transformer manufacturing plant in Reynosa,” Cantú Deándar said, in a posting on social media.
“This announcement is a clear reflection of the Governor’s economic policy and is a sign that we’re moving in the right direction, strengthening our relationships with global leaders in technology innovation.”
In a press release, Hitachi Energy said it plans to bolster manufacturing capacity in North America with additional investments of over $155 million. It listed:
Hitachi Energy CEO Schierenbeck said his company’s order backlog has more than tripled since 2020 with the U.S. making a substantial contribution. He pointed out that Hitachi Energy has added over 8,000 employees between 2020-2023, including more than 1,200 in the U.S. He said that in North America, Hitachi Energy has already announced over $150 million USD of investments and future investment plans are under consideration.
Hitachi Energy’s motto is “Advancing a sustainable energy future for all.”
