The company, Gov. Bill Haslam and Economic Development Commissioner Bill Hagerty made the announcement Monday morning in Memphis, saying the plant will create up to 275 new jobs.
The new plant will build extra-high voltage shell type power transformers and will be located in the Rivergate Industrial Park.
Mitsubishi Electric Power Products' President and CEO Brian Heery said the company chose Memphis because it needed a waterfront location in a city large enough to provide a pool of potential employees.
The plant will cost $200 million to build.