Hitachi Energy and E.ON sign deal worth up to $700 million USD for critical grid infrastructure to bolster energy security and resilience in Germany

Group 1: Company Overview - Hitachi Energy has announced a new deal worth up to $700 million USD with E.ON to deliver transformers for the German energy grid, aimed at enhancing energy security, resilience, and affordability [1] - The company is executing the largest investment plan in the global transformer industry, with a total of $9 billion USD to scale up manufacturing capacity worldwide [3] - Hitachi Energy employs over 2,000 people across eight locations in Germany, including three key manufacturing sites [3] Group 2: Industry Context - There is a significant global shortage of transformers, which are essential for efficient electricity transmission and distribution [3] - Following recent German elections, energy prices and reliability have become major concerns for voters, with over 70% citing rising living costs as their primary issue [2] - Electricity demand in Germany is projected to increase from 96 TWh in 2024 to 236 TWh by 2035, driven by advancements in AI, data centers, and the electrification of key industries [2] Group 3: Strategic Importance - The agreement with E.ON will allow Hitachi Energy to reserve manufacturing capacity to support the accelerated expansion and modernization of the German power grid [4] - Hitachi Energy's CEO emphasized the need for bold investments and innovations to shape future energy systems, highlighting the company's commitment to delivering critical equipment [5] - The company is recognized as a leader in high-voltage technology, with one in every four high-voltage switchgear units globally being from Hitachi Energy [5][6]