GUELPH, ONTARIO--(Marketwired - March 25, 2015) - Hammond Power Solutions Inc. ("HPS") (TSX:HPS.A) a leading manufacturer of dry-type and cast resin transformers and related magnetics, today announced that it has completed the formation of a new company, Corefficient S. de R.L. de C.V. ("Corefficient"), a joint venture with National Material LP ("NMLP").
Corefficient will design, manufacture and market energy efficient electrical cores, a major component used in the manufacture of dry type and liquid filled transformers. Corefficient will be based out of Monterrey, Mexico, where a state of the art manufacturing facility is currently under construction and will be fully operational by the fourth quarter of 2015.
The joint venture agreement between HPS and NMLP was signed and announced on October 23, 2014.
Bill Hammond, Chairman and Chief Executive Officer of HPS commented, "Corefficient is an exciting venture and is reflective of the strong, long-term relationship between Hammond Power Solutions Inc. and National Material LP. Both partners bring the value of people, technology and financial strength to Corefficient. The manufacturing operation will be world class."
The electrical core product manufactured by Corefficient will meet new U.S. Department of Energy efficiency regulations commencing in 2016.
Mr. Hammond further commented, "This represents an attractive new business for HPS that is expected to enhance our financial performance going forward as we expand our presence in the North American transformer component market."
ABOUT HAMMOND POWER SOLUTIONS INC.
Hammond Power Solutions Inc. (TSX:HPS.A) is a North American leader for the design and manufacture of dry-type custom electrical engineered magnetics, electrical dry-type and cast resin transformers. Leading edge engineering capabilities, high quality products, and responsive service to customers' needs have all served to establish HPS as a technical and innovative leader in the electrical and electronic industries. HPS has operations in Canada, the United States, Mexico, India and Italy.
ABOUT NATIONAL MATERIAL LP
National Material L.P. develops manufactures, processes, and supplies steel, aluminum, and ferrous raw materials. It offers hot and cold rolled and electrical steel, as well as galvanized, aluminized, and other coated metals; engineered pre-painted products; and rolled carbon steel from domestic and foreign mills in the United States, as well as serves as an export agent for mills in the international markets. The company has locations in the United States, Canada, Mexico, China, South America, Europe, Russia, and the Far East.
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to among other things, HPS' strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" and words and expressions of similar import. Although HPS believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to currency rates); changes in laws and regulations; legal and regulatory proceedings; and the ability to execute strategic plans. HPS does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.