Siemens to produce large power transformers in U.S. by 2027

Siemens Energy expects to start making large industrial power transformers in the U.S. in 2027 and could further expand its Charlotte plant if demand and import tariffs remain high, senior executives said.

Siemens Energy, which gets more than a fifth of its sales in the U.S. and has about 12% of its roughly 100,000 employees in the U.S., has several plants making wind and gas turbines as well as grid components.

Overall, more than 80% of so-called large power transformers (LPTs) -- bus-sized components needed to convert grid transmission voltage levels -- are currently imported into the U.S., said Tim Holt, a Siemens Energy board member.

That’s why Siemens Energy is expanding its plant in Charlotte, North Carolina, with the first local LPTs expected to roll off the factory line in early 2027, Holt said, adding that there is plenty of room for further expansion if needed.

The company expects total investment in the outdated U.S. grid to reach $2 trillion by 2050, as power demand is expected to surge thanks to data centers needed for artificial intelligence technology.

“This time, we expect the boom cycle for grid expansion to be longer than the usual two to three years. The market is very optimistic now,” Holt, who runs Siemens Energy’s U.S. business, said at a company event.

Maria Ferraro, finance chief at Siemens Energy, said the group was taking a medium- to long-term view on the U.S. market, where some companies are rethinking their footprint in the wake of U.S. President Donald Trump’s trade war.

“Will we change our strategy or the way we approach the U.S.? I would say no, because we already have a long-term foundation there and it’s a key market for us,” Ferraro said.

Siemens Energy said in May it expected U.S. import tariffs to reduce group net profit by less than 100 million euros ($117 million) in 2025 after Trump threatened to impose 50% tariffs on EU goods if no deal was reached by July 9.

“Any significant change in tariffs would also mean we review our estimated impact,” Ferraro said.