Hammond Power Solutions Expands U.S. Transformer Production with New Texas Plant

Hammond Power Solutions has signed a long-term lease for a new manufacturing facility in Fort Worth, Texas, to increase capacity for large standard and custom transformers. The facility is expected to add about CAD $250 million in annual manufacturing capacity initially, with potential for CAD $400 million upon full build-out. Production is slated to begin in stages starting Q4 2027, with an investment of approximately CAD $50 million for the initial phase.

The Fort Worth site marks Hammond Power Solutions' first dedicated U.S. manufacturing footprint, complementing its established operations in Canada and Mexico. The company's leadership pointed to rising transformer demand driven by data centre construction, electrification initiatives, and power infrastructure upgrades as key factors behind the expansion. The facility's location was chosen partly for its proximity to major customers, which could reduce shipping times for certain product lines.

The initial phase represents a roughly CAD $50 million investment, funded through existing cash reserves and credit facilities. Company executives noted that manufacturing processes and operational efficiencies developed at its Canadian and Mexican plants will be applied in the new purpose-built facility. The site was also selected for its potential to scale further, with total capacity potentially reaching CAD $400 million annually if market conditions warrant additional investment.