Siemens to begin manufacturing large power transformers in US by 2027

Siemens Energy has announced its intention to commence production of industrial-scale large power transformers (LPTs) in the US by 2027, as reported by Reuters.

The company may also expand its Charlotte plant to address high import tariffs and growing demand.

Siemens produces more than a fifth of its sales from the US market and employs 12% of its 10,000 workforce there.

The company operates several production facilities that manufacture wind and gas turbines and components for electricity grids.

Siemens Energy board member Tim Holt highlighted that currently more than 80% of LPTs are imported to US. These bus-sized units are crucial for adjusting voltage levels for grid transmission.

The company anticipates that $2tn investment will be required for updating the US power grid by 2050.

This prediction aligns with the projected increase in electricity demand driven by data centres essential for AI technologies.

Holt stated: “This time we expect a longer boom cycle for grid expansion than the usual two to three years. The market is very positive right now.”

Siemens Energy chief financial officer Maria Ferraro expressed a sustained commitment to their presence in the American market despite some companies re-evaluating their operations following trade tensions initiated under President Donald Trump’s administration.

Ferraro stated: “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 estimated that US import tariffs would have a minimal impact on net profits: less than €100m ($117m) by 2025.

However, these calculations were made before threats emerged regarding potential new levies on EU goods without a transatlantic trade agreement by 9 July.

Ferrero added that “…any large change in the tariffs would also mean a review of our estimated impact.”