Hitachi Energy expands transformer market in North America

Hitachi Energy has announced the signing of a definitive agreement to acquire Canduct, a manufacturer of transformer insulation kits and components.

This heralds a major expansion of the company’s North American transformer insulation business.

“The investment addresses a critical bottleneck in the region's transformer supply chain by expanding the company’s North America regional insulation and components capabilities, strengthening resilience, and accelerating the delivery of essential grid infrastructure,” the company said in a statement.

Hitachi Energy’s acquisition of Canduct is expected to close at the beginning of the third quarter of 2026, subject to customary closing conditions.

Canduct, headquartered in Ontario, Canada, manufactures transformer insulation kits and components, serving original equipment manufacturers and repair companies across the US and Canada.

Electrification demand

Founded in 1982, the company has supplied high-quality transformer insulation solutions to Hitachi Energy for more than two decades.

By integrating Canduct’s operations and more than 300 employees, Hitachi Energy said it will expand its capabilities to deliver critical transformer components needed to support the growth in electricity demand.

Bruno Melles, CEO of the transformers business unit at Hitachi Energy, said that by acquiring the Canduct Group, the company is “expanding regional capabilities, strengthening supply chains for insulation kits and components, and supporting the growing demand for electrification across the region”.

Latin America expansion

In March, Hitachi Energy announced that it is to invest an additional $150 million to expand its power transformer manufacturing across Latin America, aimed at boosting capacity to meet global demand for electrification and accelerate grid infrastructure.

In Colombia, $80 million will go into expanding and increasing the efficiency of the Dosquebradas (Risaralda) transformer factory, while in Brazil, $70 million will build on previously announced investments to strengthen and accelerate the expansion of the Pindamonhangaba and Guarulhos sites.

Alexandre Malveiro, Hub SAM Manager, Business Unit Transformers, Hitachi Energy, said that demand for transformers is rising faster than ever.