Siemens Energy has begun the expansion of its transformer manufacturing facility in Nuremberg, Germany, in response to the rising global demand for large transformers essential for grid expansion.

The company is investing approximately €220m ($256.2m) in the expansion, which is set to create 350 new jobs and enhance production capabilities at the Nuremberg factory.

The current workforce at the Nuremberg factory, which has been operational since 1912, stands at nearly 1,000 employees.

The expansion will increase the facility's footprint by about 16,000m² and boost production capacity by roughly 50%.

Despite ongoing operations, the construction for the expansion will proceed, with the expectation that the new production areas will be operational by 2028.

The Bavarian government is contributing up to €20m in technology funding to support the expansion project.

Bavarian Minister-President Markus Söder said: “Nuremberg is becoming a hub for the energy transition: With an investment of €220m, Siemens Energy is creating 350 modern jobs in a place that has been successfully shaping energy history for over a century.

“We are investing up to €20m in research and development for this project alone. Thus, we are creating a climate for an economically friendly future, secure jobs, and environmentally friendly technologies.”

The company said transformers play a critical role in the power grid, connecting different voltage levels and facilitating the transmission of electricity over vast distances.

The Nuremberg plant's transformers are seen as integral to major energy infrastructure projects across the globe, including connecting offshore wind farms, stabilising power grids, and supporting international electricity connections for cross-border energy exchange.

This investment follows Siemens Energy's previous commitment of €90m for a new converter production facility at the same location.

Over the past three years, Siemens Energy has invested around €1bn in Germany, leading to the creation of approximately 1,300 new jobs in 2024, with an additional 1,500 jobs anticipated by the end of 2026.