Dive Brief:
- Schneider Electric is upgrading two of its manufacturing facilities in Tennessee to bolster its production of custom electrical switchgear and medium-voltage power distribution products, in part to meet escalating demand from data centers.
- It has earmarked $85 million of an overall $140 million investment to begin manufacturing at a 500,000-square-foot building in Mount Juliet, Tennessee, which it expects will begin shipping products by mid-2024 and be fully operational by 2025, and to upgrade its existing facility in Smyrna, Tennessee, according to a March 14 news release.
- Schneider’s energy efficiency, sustainability and data center solutions continue to drive revenue growth, the company said. "The need for electrical infrastructure to support advanced computing and technological progress has never been greater," Aamir Paul, president of North America operations, said in the release.
Dive Insight:
Schneider Electric’s North America energy management segment revenue grew 10%, to $2.9 billion, in the fourth quarter of 2023 and 19.5%, to $11.2 billion, for the full 2023 fiscal year compared with those periods in 2022. Data center, grid infrastructure and process industry investment trends are driving the strong demand for the France-based firm’s offerings, CEO Peter Herweck said on a Feb. 15 earnings call.
The $140 million investment is part of Schneider Electric’s ongoing commitment to strengthen its U.S. manufacturing presence and create new jobs, an effort that included the construction of a 160,000-square-foot smart manufacturing plant that opened in 2023 in El Paso, Texas. The company said it expects to hire roughly 750 total new workers in manufacturing and related roles this year.
Both Tennessee plants will incorporate advanced manufacturing technologies and software to boost operational performance, energy savings and carbon emissions reduction, Schneider said. The company has also recently upgraded and automated some of its manufacturing and distribution centers in Lexington, Kentucky; Lincoln, Nebraska; and Mechanicsburg and Middletown, Pennsylvania. These improvements, alongside this 2024 investment, will enable the automation and energy management firm to “streamline its production and order fulfillment processes, stay competitive and agile, and bolster its domestic supply chain capabilities,” it said in the news release.
The new manufacturing plant in Mount Juliet and upgrades in Smyrna will create about 455 new manufacturing jobs in 2024, in roles that range from manufacturing technicians and engineers to test technicians and quality leads, it said.
