GUELPH, Ontario — Hammond Power Solutions announced that it has signed a long-term lease for a new manufacturing facility in Fort Worth, Texas. The facility will expand HPS’s ability to serve U.S.-based customers requiring large standard and custom-engineered transformers. The Fort Worth facility is strategically located to improve proximity to key customers, shorten delivery distances for certain products, and enhance HPS’s ability to serve core end markets.
“HPS has built a strong manufacturing platform through its operations in Canada and Mexico, and those facilities will continue to be an important part of how we serve the North American market. This new investment in a U.S. facility is about being closer to our customers and better positioned to support the long-term demand we are seeing for our products,” said Adrian Thomas, Chief Executive Officer of HPS. “Demand for transformers continues to increase, particularly from large projects tied to data centres, electrification and power infrastructure. The Fort Worth facility gives us additional capacity in the U.S. to improve responsiveness, support shorter delivery distances for certain customers, and help us continue to provide the reliability and service our customers expect from HPS.”
Production activities at the facility are expected to commence in stages beginning in Q4 2027, with full production anticipated in Q1 2028. Once fully operational, the facility is expected to initially add approximately CAD $250M of manufacturing capacity, based on anticipated demand and normal course operating assumptions. HPS expects to invest approximately CAD $50 million to equip and commission the initial production phase, which it anticipates funding through its existing cash and credit facilities.
The facility was selected, in part, because of its potential to support additional capacity over time. Subject to market demand, future capital investment and other relevant factors, the site could support total annual manufacturing capacity of approximately CAD $400 million.
“Over the past several years, we have made significant investments to enhance efficiency, throughput and capacity across our manufacturing operations in Canada and Mexico,” said John Bailey, Chief Operations Officer of HPS. “The Fort Worth facility provides an opportunity to apply the operational disciplines, manufacturing processes and lessons learned from those investments in a purpose-built environment designed to support future growth. The facility will enhance our manufacturing flexibility, increase our ability to scale efficiently and reinforce the quality, consistency and reliability that define HPS.”
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