Mitsubishi Electric and Mitsubishi Electric Power Products will build a power transformer manufacturing unit in Memphis, Tennessee, US.
The new 350,000ft² facility at the Rivergate Industrial Park will initially manufacture large power transformers.
The extra-high voltage shell-type power transformers built at the facility are expected to aid in the development of stable and reliable electric grids in North America.
The new Memphis plant is expected to begin production in 2013, with construction due to begin in the third quarter of 2011.
Tennessee Department of Economic and Community Development Commissioner Bill Hagerty said the facility may ensure energy infrastructure that is efficient, reliable and globally competitive at a time when there is a debate over adequacy of the nation's ageing power grid.