Background on Prolec GE and its Relevance
Prolec GE, a joint venture between Monterrey-based Xignux and GE Vernova, is making significant strides in the electrical transformer manufacturing industry. The company specializes in medium-voltage transformers, crucial components for the reliable and sustainable electric grid in North America. With this new investment, Prolec GE aims to bolster its production capabilities and contribute to the ongoing electrification efforts in the region.
Investment Details and Impact
Prolec GE announced a $140 million investment to expand its manufacturing plant in Goldsboro, North Carolina. The project will construct a fully automated 13,400 square-meter facility, integrating cutting, winding, assembly, and testing processes. This new line will add 200 units per year to the company’s current production capacity and create over 330 full-time jobs in production, maintenance, supervision, and engineering roles within the next three years.
Government Support and Incentives
Recognizing the economic impact of this investment in eastern North Carolina, Prolec GE will receive various state and local incentives: $7.3 million from the state and $5.5 million from Wayne County. Additionally, the project qualified for a tax credit under the Advanced Energy Project Tax Credit Program due to Prolec GE’s commitment to expanding domestic production of essential components for the electric grid and generating high-quality jobs.
Prolec GE’s Growth Strategy
This investment is part of Prolec GE’s broader strategy to strengthen its position in North America. In 2024, the company initiated a strategic project to double production of pedestal single-phase transformers for the electric sector. Prolec GE also announced the completion of a new production line in Shreveport, Louisiana, capable of manufacturing over 1,500 three-phase transformers annually, targeting renewable energy and industrial projects in the United States.
Furthermore, Prolec GE optimized its plant to increase voltage regulator and distribution transformer production by 15%. The company also started improvements in its power transformer line to reduce manufacturing times and boost production volume.
Key Questions and Answers
- What is Prolec GE? Prolec GE is a joint venture between Monterrey-based Xignux and GE Vernova, specializing in medium-voltage transformers for the North American electric grid.
- Why is this investment significant? The $140 million investment will double Prolec GE’s production capacity in Goldsboro, North Carolina, and create over 330 new jobs within three years.
- What government support is Prolec GE receiving? Prolec GE will receive $7.3 million from the state of North Carolina and $5.5 million from Wayne County, along with a federal tax credit under the Advanced Energy Project Tax Credit Program.
- What is Prolec GE’s growth strategy? Prolec GE aims to strengthen its position in North America by doubling pedestal single-phase transformer production, completing a new production line in Louisiana for renewable energy and industrial projects, and optimizing its plant for increased voltage regulator and distribution transformer production.
