Eaton kicks off project to expand Texas transformers factory

Eaton kicks off project to expand Texas transformers factory Source: Creative Commons CC0

American-Irish power management company Eaton (NYSE:ETN) has commenced construction works on a USD-100-million (EUR 94.9m) project to more than double the production capacity of its plant in Texas to meet the soaring demand for electrical components needed for grid modernisation.

The project will see the addition of 200,000 square feet (18,580 sq m) to Eaton’s existing facility in Nacogdoches to increase the manufacturing of single-phase, pole-mount and pad-mount transformers.

The increased output in Texas will allow Eaton to free up capacity at its largest Wisconsin manufacturing facility in Waukesha, where the company is investing USD 22 million in equipment to bolster the making of three-phase transformers for utility, data centre, large commercial and industrial applications. That site is also producing regulators for utility customers.

“Utilities across the US are modernising critical infrastructure to accelerate a smarter grid and clean energy future. Our solutions are vital to make these projects a reality, and we’re making steady investments to support our utility customers,” said Guillaume Laur, Eaton senior vice president for power delivery and regulation.

The Texas project is part of a broader USD-500-million investment plan announced by Eaton to support electrification, energy transition and digitalisation across industries. The company will also expand the production of busway and EV charging technology products at its South Carolina facility. Additionally, it will be adding capacity to increase supplies of switchgear and switchboards, among other initiatives.

(USD 1 = EUR 0.949)

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Marta is an M&A and IPO specialist with years of experience covering energy deals in the US and EU.

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