Off the grid – new inward investment and jobs in Scotland’s energy transition

The iconic Japanese brand will open the new premises in the heart of the city centre early next year, after receiving a £1.7million grant from Scottish Enterprise to support an overall investment of just over £3m.

The centre will be the base for 88 engineers and project managers primarily focussed on the upgrading of the UK’s electrical grid in the move towards a net-zero future.

The announcement comes as Cabinet Secretary for Climate Action and Energy Gillian Martin leads an energy transition delegation at World Expo Osaka to explore opportunities for Scottish businesses and inward investment.

Ms Martin met with Hirohide Hirai, Vice President & Executive Officer at Hitachi Ltd, at the company’s Tokyo HQ to welcome the news as the visit drew to a close.

She said: “The expansion of our electricity networks will play a crucial role in delivering our energy ambitions - in particular for offshore wind - and maximise the economic opportunities for Scotland’s abundant renewable resources. 

“I am delighted that Hitachi has chosen Glasgow as the city to base its new UK Centre of Excellence, helping to highlight Scotland’s leading role in developing renewable energy across the globe. 

“An investment of this nature sends a clear signal to investors that Scotland is open for business, and this announcement is a prime example of how our focus on stimulating investment and targeting projects will, in turn, act as a catalyst to further investment, jobs and opportunities across Scotland. 

“The Scottish Government and our partners stand ready to help unleash the enormous economic benefits that the transition to clean and renewable power will bring to people across the country.”

Reuben Aitken is the Managing Director of Scottish Enterprise’s international division, as well as heading up the agency’s Mission to Accelerate the Energy Transition.

He said: “Upgrading the grid is crucial to our transition to net zero. It helps us electrify our economy and our ability to continue to attract businesses to Scotland, as well as helping scale and grow the ones already here.

 “The decision by Hitachi Energy to come to Glasgow, with our support, is real recognition of the engineering skill that exists in Scotland and the energy sector expertise that we bring to the global transition.”

Hitachi Energy is headquartered in Zurich, Switzerland, and part of the Hitachi Group which started in Ibaraki, Japan, in 1910.

The energy arm is now one of the world’s leading suppliers of the equipment that forms the backbone of electricity transmission grids.

As well as servicing the UK’s electrical grid, the Glasgow centre will be part of Hitachi’s global network servicing projects worldwide and the high-level engineering skill set available in Scotland is expected to be shared throughout its global network of engineers.

Hirohide Hirai, said: “The UK is a very important country for the whole of the Hitachi Group. I am very proud of the role Hitachi Energy is playing in the vital task of developing the electricity grid for Scotland’s electrified future. People are our most important asset and establishing our new Glasgow Centre is a key step in welcoming more local talent to support our growth.”

Hitachi Energy’s Country Managing Director for the UK and Ireland, Laura Fleming, highlighted the continued investment in Scotland: “This represents a significant investment in Scotland and adds to our footprint across the UK.

“The investment is largely due to the continued trust of our customers in helping them to deliver the energy system of the future. Together, we are rapidly expanding to meet soaring demand for grid infrastructure.

“Across the UK and in Scotland we plan to expand to over 1,000 employees by 2027 offering long lasting and rewarding careers with this site being key to our growth placing Scotland as central to achieving Clean Power by 2030.”

The Growth and Inward Investment Team at Skills Development Scotland (SDS) worked alongside Scottish Enterprise in support of Hitachi’s plans for investment.

Vicki MacLean, Growth and Inward Investment Manager at SDS, said: “Having access to a highly-skilled and experienced workforce was an important factor in Hitachi deciding to locate in Glasgow.

“SDS was able to provide a wealth of data showing not only the workforce available just now, but the healthy pipeline of talent coming through our education system, and we now look forward to helping Hitachi flourish and grow in Scotland.”

Hitachi Energy is the latest Japanese energy company to move into Scotland, boosting the start-to-end supply chain and securing Scotland’s position as a world leader in the move to renewables.

Alongside the recent news that Mitsui has completed the takeover of the Port of Nigg, Sumitomo are creating a subsea cable facility at the same location, Marubeni Corporation now have a base in Glasgow.

Ms Martin’s visit to Hitachi formed part of an overall four-day programme of activity to build on this relationship and promote Scotland and Scottish businesses to the global delegation attending Expo Osaka.

A total of 158 participating countries, as well as 42 different international agencies, such as The European Union, UNICEF and UNESCO were in attendance.