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Mitsubishi Electric to Strengthen Production Facilities for Energy System Business in U.S. and JapanNew investments will respond to trends in energy transition and increasing power demand

FOR IMMEDIATE RELEASE No. 3744

TOKYO, October 30, 2024 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that its U.S. subsidiary Mitsubishi Electric Power Products, Inc., headquartered in Pittsburgh, Pennsylvania, will invest approx. USD 86 million (approx. 12 billion yen*) in advanced switchgear production and power electronics in the U.S. This investment is driven by the increasing demand for transmission and distribution grid products as the U.S. moves toward its renewable energy and decarbonization goals. Combined with Mitsubishi Electric's investment in a factory in Japan, the Mitsubishi Electric Group' total investment of approx. USD 110 million (approx. 16 billion yen^*) will strengthen its energy system production capabilities both in Japan and overseas.

Mitsubishi Electric Power Products will construct a new approximately 160,000 square foot Advanced Switchgear Factory in Western Pennsylvania, marking Mitsubishi Electric Power Products' first new manufacturing facility in over a decade. Initially, the factory will focus on the production of both vacuum and gas circuit breakers. As the factory scales its operations, it will transition to predominantly manufacturing vacuum circuit breakers, aligning with Mitsubishi Electric Power Products' commitment to meet the evolving needs of U.S. electric utilities and support the nation's broader decarbonization efforts. Upon reaching full capacity, it is anticipated that the facility will employ more than 200 full-time workers.

Mitsubishi Electric Power Products will also expand and upgrade its existing facilities in Warrendale, PA, with investments in power electronics and test labs. In addition, Mitsubishi Electric will invest in its Transmission & Distribution Systems Center, a Japan-based factory, to improve its productivity of switchgear, including key components. This investment is also aimed at meeting the rapidly growing demand for electricity. Mitsubishi Electric Group will further contribute to stable electric power supply by enhancing its production capabilities and supply chains in energy system business.

Tricia Breeger, President and CEO of Mitsubishi Electric Power Products, emphasized the strategic importance of these investments, stating, "At Mitsubishi Electric Power Products, we lead with innovation. By investing in this state-of-the-art switchgear factory, we will better serve our customers, and we will significantly advance the production of critical components that strengthen both distribution and transmission grids while driving new technologies forward in support of the nation's decarbonization initiatives. Our switchgear and power electronics solutions are essential for meeting the growing demand for electricity, from powering homes and businesses to supporting the rapid expansion of data centers."

Mitsubishi Electric Power Products will implement advanced software and automation technologies both at the new switchgear factory and within its existing switchgear operations. Breeger continued, "By introducing process improvements, we will optimize operational efficiency and maintain our commitment to product quality, ensuring that we meet the growing energy needs of the U.S. while staying at the forefront of technological innovation."

The Commonwealth of Pennsylvania is investing in Mitsubishi Electric Power Products' expansion. The company received a funding proposal from the Department of Community and Economic Development (DCED) for a $4 million Redevelopment Assistance Capital Program (RACP) grant and a $2.75 million Pennsylvania First grant.

"Pennsylvania is open for business, and we are working every single day to make our Commonwealth the best state in the nation for business growth and economic opportunity," said Pennsylvania Governor Josh Shapiro. "Right here in the Pittsburgh region, we're making targeted investments to attract more projects like Mitsubishi Electric Power Products', boost our economy, and create good-paying jobs for Pennsylvanians. Since day one, my Administration has been focused on building a stronger economy that creates opportunities and a brighter future for our communities - and these jobs are yet another step forward in that work."