25 years of excellence: Hitachi Energy’s smart capacitor factory powers high-quality growth

• 25 years of innovation, delivering high-performance power quality solutions to enable stable power supply for customers around the world
• Energy transition drives rising market demand, prompting capacity expansion
• Leveraging intelligent manufacturing to unlock high-efficiency output, supporting the future grid with reliable power quality products

Hitachi Energy held the 25th anniversary celebration of Xi’an Hitachi Energy Power Capacitor Co., Ltd. on Oct.24 in China’s northwest Shaanxi province. Over a hundred industry experts, customers, and partners gathered for the ceremony, technical seminar, and site tour, jointly witnessing the company’s 25-year journey of innovation. Senior government officials from Xixian New Area attended the event.

The Xi’an factory was established in 2000, serving as Hitachi Energy’s only capacitor manufacturing base and power quality solutions center in China. In April 2023, the facility was relocated to a modern industrial park in Xixian New Area. The new site features Hitachi Energy’s globally leading dry-type and wet-type capacitor production lines, as well as assembly lines for power quality systems, all upgraded with full automation and intelligent manufacturing capabilities.

Over the past 25 years, the Xi’an factory has been at the forefront of advancing capacitor and power quality technologies in China, participating in over 30 domestic and international ultra-high and extra-high voltage projects, helping to enable highly efficient renewable energy delivery. The factory also provides power quality solutions for various industries, including data centers, green hydrogen production, and other sectors, meeting the growing demand for efficient, secure, and reliable power. Today, the facility exports to Europe, the Americas, Oceania, Africa, Southeast Asia, and the Middle East, playing a key role in Hitachi Energy’s global R&D and supply chain for power quality products.

“The Xi’an factory’s 25-year journey has been one of close collaboration and co-innovation with our customers and partners. We have deeply contributed to the development of China’s power system, delivering reliable power quality products to users worldwide,” said James Zhao, Executive Vice President and Region Head Greater China, Hitachi Energy.

“In recent years, Hitachi Energy has continuously increased investment in the Xi’an site, accelerating expansion to achieve a leapfrog growth in production capacity and meet rapidly growing global demand. With enhanced local manufacturing capabilities and leading technologies, we are committed to supporting China’s dual-carbon goals and contributing reliable, high-efficiency solutions to the global energy transition.”

As the energy transition accelerates, the integration of large-scale renewables and rising loads from new applications, like data centers, is making power quality more critical than ever. The growing demand for high-reliability power supply is creating significant market opportunities. In 2024, Hitachi Energy launched a dry-type capacitor production expansion project at its Xi’an site, deploying intelligent conveyor systems, AI-based visual inspection, and robotic automation to drive efficient production through smart manufacturing. The first phase of the project was successfully commissioned in early 2025, tripling the site’s dry-type capacitor production capacity.

Leveraging its new capacity and technological strengths, the factory has actively supported key projects in HVDC transmission and renewable integration, including the world’s first 800 kV UHVDC flexible transmission project – the Gansu to Zhejiang UHVDC project, the Mumbai HVDC link in India, and the Nederviek 1 offshore wind farm in the Netherlands. The second phase of the expansion is now fully underway, laying a solid foundation for future growth.

“Under the energy transition, power quality has become essential for grid resilience, system efficiency, and the integration of renewable energy. As a technology leader in this field, Hitachi Energy leverages the Xi’an manufacturing base as a strategic hub to deliver high-performance capacitors and power quality solutions for global energy transformation,” said Markus Heimbach, Executive Vice President and Managing Director of the High Voltage Products Business Unit, Hitachi Energy. “We will continue to invest in talent, innovation, and capacity, strengthening the facility’s strategic role in Hitachi Energy’s global high-voltage business and helping build a more sustainable, secure, resilient, and affordable energy system.”