GUELPH, Ont.—Hammond Power Solutions Inc. (HPS) has signed a joint venture agreement with Illinois-based National Material LP to establish a new company that will manufacture transformer cores for the electrical industry.
According to the Guelph, Ont.-based transformer maker, it has entered an agreement with National Material to jointly finance the new company that will make transformer cores under a new brand name that will be sold in the United States and Mexico.
HPS will own a 55 per cent interest in the new company.
“By building on the strengths of both companies, we are confident that this venture will enhance our performance going forward,” HPS chair and chief executive Bill Hammond said. “(This) is the culmination of long-term partners working together closely to bring value to our customers, communities and shareholders.”
It was not clear where the new plant, which the company expects will be fully operational in the fourth quarter of 2015, will be located.
HPS has operations in Canada, the U.S., Mexico, India and Italy, while National Material has locations throughout North and South America, Europe, Russia, and Asia.