"Power transformers are not a niche product; they are essential to literally keeping the lights on, supporting everything from homes and hospitals to advanced manufacturing and industrial needs across Virginia and our nation," Gov. Abigail Spanberger said at the groundbreaking. "They are critical to strengthening and modernizing our electrical grid as energy demand continues to grow."

Scope includes a manufacturing building exceeding 300,000 sq ft, with assembly bays taller than 120 ft and an overall building height of about 130 ft to accommodate a 375-ton overhead crane for assembling and moving large power transformers, according to Halifax County land-use records. Completed units will ship by rail from the rear of the facility, allowing oversized equipment to move directly onto the rail network.

The project also includes a four-story office component and a redesigned site circulation that separates employee traffic from heavy industrial shipments, according to public hearing testimony.

Beyond the manufacturing complex, the project includes off-site infrastructure improvements.

County documents show Virginia Dept. of Transportation upgrades are planned at the existing signalized entrance, while a new roadway connecting the rear of the facility to the industrial park will route heavy truck traffic away from the primary employee entrance. The county's rezoning application also documents Hitachi's acquisition of adjoining parcels needed for the expansion.

Company officials say the project is expected to create 825 jobs, nearly doubling employment at the facility. Greg Callahan, senior vice president of transformers for Hitachi Energy North America, said the company plans an extensive workforce development effort as it ramps up hiring.

"We fully plan to engage in a comprehensive training program," he said at the groundbreaking. "The other key aspect is when we recruit people, they need to have a place to live. So housing is a critical element here in this local community."

Expansion Improves Local Infrastructure and Grows the Workforce

The South Boston expansion is part of Hitachi Energy's previously announced $1 billion-plus U.S. manufacturing initiative.

An aerial view shows Hitachi Energy's existing South Boston, Va., manufacturing campus and the surrounding industrial area where the company is expanding production of large power transformers.

Image courtesy of Halifax County.

According to the Virginia Economic Development Partnership, the incentive package includes a performance-based Major Employment and Investment grant of up to $29.4 million, with the Virginia Talent Accelerator Program providing workforce recruiting and customized training. The county also committed 10 acres for workforce housing and waived permit and utility connection fees.

The manufacturing expansion has also prompted a parallel investment in housing.

Spanberger said the state paired the manufacturing project with workforce housing because "jobs without homes don't always stick."

She said the initiative includes 136 apartments and townhomes, supported by the Virginia Workforce Housing Investment Program, Virginia Housing, the Virginia Tobacco Region Revitalization Commission, and the Southern Crescent Regional Commission. Halifax County committed more than $8 million in public funding, donated land and waived local fees.

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The expansion required multiple local approvals beginning in late 2025, including a height variance and the rezoning of additional property from agricultural to industrial. During a variance hearing, project engineer Clay Lewis of Haines Gibson & Associates told county officials that additional building height was required to manufacture the larger transformers planned.

The project generated relatively little organized opposition during the public review process, according to records from the Halifax County Board of Supervisors.

Callahan acknowledged the project is running "a little behind where we want it to be," but said the expansion remains targeted for completion in 2029. Hitachi Energy did not immediately respond to ENR's requests for additional project details.