Energy · Profile from Energy Research Companion
Hitachi Energy
The former ABB Power Grids — the world's largest maker of power transformers and the leading supplier of high-voltage direct-current (HVDC) links (company claims) — bought by Japan's Hitachi in two steps: 80.1% agreed in December 2018 and closed on 1 July 2020, and the remaining 19.9% for ~$1.68bn, completed in late December 2022. Renamed Hitachi Energy in October 2021 and run from Zurich, it found itself in 2023–26 selling the grid's scarcest equipment: large power transformers with average lead times of ~128 weeks (Q2 2025, Wood Mackenzie) and HVDC converter stations reserved years ahead by European transmission operators (its share of TenneT's 2 GW programme was ~€13bn with Petrofac, 2023). Its answer has been the largest capacity build in its history — more than ~$9bn of investments committed globally (reported, Jan 2026), including ~$1bn in the US announced in September 2025 with ~$457m for a new large-power-transformer factory in South Boston, Virginia. It is the book's clearest case of transformers and HVDC as the grid's scarce equipment.
At a glance
- Founded
- Roots in ASEA (Sweden, 1883) and Brown, Boveri & Cie (Switzerland, 1891), merged as ABB in 1988; ABB Power Grids division (from 2016); Hitachi ABB Power Grids from 1 Jul 2020; Hitachi Energy from Oct 2021
- Headquarters
- Zurich, Switzerland; HVDC centre in Ludvika, Sweden; major US operations including South Boston, Virginia (transformers since 1968), Raleigh, North Carolina, and other plants (verify list)
- Ownership / structure
- Wholly owned subsidiary of Hitachi, Ltd. (Tokyo) since Dec 2022; listed Indian subsidiary Hitachi Energy India Ltd (NSE/BSE, majority-owned, verify stake)
- Leadership (2026)
- Andreas Schierenbeck (CEO, verify start date); Claudio Facchin (led ABB Power Grids and Hitachi Energy, 2016–2024, verify); within Hitachi's Green Energy & Mobility sector (verify current structure)
- Business lines
- Transformers (power, distribution, traction, service); HVDC and power-quality systems (FACTS, STATCOM); high-voltage products (gas-insulated switchgear, breakers, SF6-free EconiQ); grid automation and software; service
- Scale
- Revenue ~$20bn a year (secondary, 2025–26, verify against Hitachi segment reporting); ~50,000 employees (verify); Hitachi Energy India order backlog ~INR 29,555 crore (31 Mar 2026) and ~INR 32,222 crore (30 Jun 2026) (company)
- Signature moves (incl. failures)
- ABB's merger and HVDC franchise (1988–); ABB's decision to sell Power Grids after years of weak margins and offshore-connection losses (2014–18); Hitachi's acquisition (2018–20); full ownership and rename (2021–22); TenneT 2 GW HVDC framework (2023); SunZia HVDC converters in the US (2023–26); global transformer and HVDC capacity programme (2024–27); US manufacturing plan and South Boston (2025)
8 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
1988
ABB Merger and the HVDC Franchise
Acquisition or merger
2018
ABB Decision to Sell Power Grids
Divestment / failure (margins and project losses leading to a sale)
2020
Hitachi Acquisition of ABB Power Grids
Acquisition
2022
Full Ownership and the Hitachi Energy Brand
Acquisition (remaining minority) / strategy pivot (rebrand)
2023
SunZia HVDC Converters
Supply contract (US transmission)
2023
TenneT 2GW HVDC Framework
Offtake or supply contract (multi-year framework)
2024
Global Transformer and HVDC Capacity Programme
Capacity investment
2025
US Manufacturing Plan and South Boston
Capacity investment