HPS and National Material LP announce formation of a new Company – Corefficient S. de R.L. de C.V.
Posted: Mar 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.”