Siemens Energy has announced plans to start producing large power transformers (LPTs) in the United States by early 2027, with the potential to expand its Charlotte, North Carolina facility even further if demand remains high and tariff conditions persist.

The move marks a significant step in strengthening domestic transformer production capacity, as more than 80% of large power transformers are currently imported into the U.S., according to Siemens Energy board member Tim Holt.

“This time we expect a longer boom cycle for grid expansion than the usual two to three years,” Holt said at a company event. “The market is very positive right now.”

The Charlotte factory, which already manufactures grid components, has sufficient space for expansion beyond 2027 if needed. This initiative aligns with Siemens Energy’s projection of $2 trillion in investment into the aging U.S. power grid by 2050, driven by rising electricity demand, especially from data centers supporting artificial intelligence applications.

Siemens Energy generates over 20% of its revenue from the U.S. and employs approximately 12,000 people across the country. The company has multiple facilities producing equipment from gas turbines to grid infrastructure.

Chief Financial Officer Maria Ferraro emphasized that the company is committed to a mid- to long-term U.S. strategy, despite growing concerns over potential new trade barriers.

“Do we change our tactic or the way to approach the U.S.? I would say no,” Ferraro stated. “We already have a long-established basis there, and it is a key market for us.”

While Siemens Energy previously estimated that current U.S. import tariffs would reduce its 2025 net profit by less than $117 million (€100 million), Chief Financial Officer Maria Ferraro said that any major changes to trade policy could lead to a reassessment of that impact.

She was referring to recent comments by President Donald Trump, who has proposed raising tariffs on European Union goods to as much as 50% if a new trade agreement isn’t reached by July 9.

“Any large change in the tariffs would also mean a review of our estimated impact,” Ferraro said.

Source: MSN