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01 Jul 2025

Siemens to Begin Manufacturing Large Power Transformers in US by 2027

01 Jul 2025  by power-technology   
Siemens Energy plans to start manufacturing industrial-scale large power transformers (LPTs) in the United States by 2027, addressing growing demand and high import tariffs. The company is also considering expanding its Charlotte, North Carolina, facility to support this initiative.


Large power transformers (LPTs) are crucial for adjusting voltage levels for grid transmission.

The U.S. market accounts for over 20% of Siemens Energy’s sales, with 12% of its 10,000 employees based there. The company operates multiple U.S. facilities producing wind and gas turbines and components for electricity grids. LPTs, essential for adjusting voltage levels in grid transmission, are critical infrastructure components, with over 80% currently imported to 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. “The market is very positive right now.” The company projects a $2 trillion investment will be needed to modernize the U.S. power grid by 2050, driven by rising electricity demand from data centers supporting AI technologies.

Siemens Energy remains committed to its U.S. operations, even amidst challenges posed by import tariffs. Chief Financial Officer Maria Ferraro emphasized the company’s established presence, stating: “Do we change our tactic or the way to approach the US? I would say no, because we already have a long-established basis there and it is a key market for us.”

In May 2025, Siemens Energy estimated that U.S. import tariffs would reduce net profits by less than €100 million ($117 million) by the end of the year. However, Ferraro noted: “…any large change in the tariffs would also mean a review of our estimated impact,” referring to potential new levies on EU goods if no transatlantic trade agreement is reached by July 9, 2025.

By producing LPTs domestically, Siemens Energy aims to strengthen the U.S. power grid while reducing reliance on imports. The expansion in Charlotte would enhance the company’s capacity to meet the increasing energy demands of a technology-driven economy, ensuring a stable and efficient electricity supply.

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