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Siemens Energy (OTCPK:SMEGF) expects to launch U.S. production of big industrial power transformers in 2027 and can further expand its North Carolina factory if demand, and import tariffs, stay high, executives said Thursday, Reuters reported.
Siemens Energy (OTCPK:SMEGF) tallies more than 20% of its total sales in the U.S. market, where it operates several plants that make everything from wind and gas turbines to electricity grid components.
More than 80% of large power transformers needed to convert voltage levels for grid transmission currently are imported into the U.S., which is why Siemens Energy (OTCPK:SMEGF) is expanding its site in Charlotte, North Carolina, where the first local LPTs are expected to run off the factory lines in early 2027, board member Tim Holt told Reuters, adding there is enough space to expand further if needed.
Citing an expected surge in power demand due to data centers that are needed for artificial intelligence technology, “we expect a longer boom cycle for grid expansion than the usual 2-3 years. The market is very positive right now,” said Holt, who is in charge of Siemens Energy’s (OTCPK:SMEGF) U.S. business.
Siemens Energy (OTCPK:SMEGF) CFO Maria Ferraro said the company is taking a mid- to long-term view on the U.S. market, even as some firms are reviewing their options in the wake of President Trump’s tariffs.
“Do we change our tactic or the way to approach the U.S.? I would say no, because we already have a long-established basis there and it is a key market for us,” Ferraro said.
Source: msn
