04 ott 2024
Westrafo, a Vicenza-based transformer manufacturer, is investing $45 million in a new production facility in Trotwood, Ohio, set to open in 2027.
This expansion aims to address the growing demand for transformers in the U.S., driven by the rise in renewable energy projects and local production incentives.
The new plant will employ 230 people and add 12 GW to Westrafo's production capacity.
The company, which has seen significant growth since its inception, also operates in Africa and plans further expansion and consolidation in various global markets.
Westrafo, a company from Vicenza specializing in transformers for renewable energy production, is making a significant investment of $45 million in a new manufacturing facility in Trotwood, Ohio.
This project, in collaboration with a Californian real estate investor, began construction on August 5 and is expected to be operational by 2027.
The facility will focus on producing medium voltage transformers and integrated solutions, creating 230 jobs and adding 12 GW to the company's annual production capacity.
This expansion complements the existing 14 GW capacity at their Montebello Vicentino plant, which was recently expanded with a €10 million investment.
CEO Alberto Cracco explains that the decision to expand into the U.S. market is driven by a shortage of transformers in the region and a rapidly increasing demand for energy solutions, including solar, storage, hydrogen, data centers, and electric vehicles.
The local market is saturated, and the Inflation Reduction Act offers tax credits for locally produced goods.
Westrafo has received substantial interest from major U.S. companies seeking local suppliers, especially for large-scale renewable projects.
The solar energy sector alone is expected to grow at a 15% CAGR until 2030.
Westrafo, a family-run business, has grown significantly since its inception nearly a decade ago.
In 2018, the company reported €7.5 million in revenue with 27 employees, and by 2023, it had grown to €77.7 million with 131 employees.
The company aims to surpass €100 million in revenue by 2024, with plans to hire an additional 20 employees by the end of the year.
In addition to its U.S. expansion, Westrafo has been operating in Africa since 2015, with a facility in Accra, Ghana, established in partnership with a local entity.
This venture was initiated to address the lack of local transformer manufacturers and support the country's electrification efforts.
The Ghanaian facility employs 35 people and continues to grow with new production lines.
Looking ahead, Westrafo plans to consolidate its ongoing investments and strengthen its presence in post-sales services across European, African, American, and Oceanian markets.
The company has also acquired a business in Pordenone to integrate part of its external supply chain and is open to further mergers and acquisitions.