Hammond Power Solutions leases a transformer plant in Texas to add CAD 250 million of annual capacity

Hammond Power Solutions, the Canadian maker of dry-type transformers listed on the Toronto Stock Exchange (HPS.A), announced on 22 September 2026 a long-term lease on a manufacturing facility in Fort Worth, Texas.

The first production phase will add about CAD 250 million of annual manufacturing capacity; once the whole site is built out, the addition could reach about CAD 400 million a year. The company expects to invest about CAD 50 million to equip and commission the first phase, funded from existing cash and credit lines. Production will start in stages from the fourth quarter of 2027.

The plant is meant for US customers that need large standard and custom-engineered transformers. Hammond, based in Guelph, Ontario, already produces in Canada and Mexico, and says the new site will bring it closer to key customers and shorten delivery routes for some products.

The reason is the same one behind other capacity announcements in the sector. According to the company's chief executive, demand for transformers keeps growing, above all from large projects linked to data centres, electrification and power infrastructure.

The choice of a lease instead of a new build keeps the initial outlay low compared with the capacity added: about CAD 50 million for CAD 250 million of yearly output. The time needed to equip the site means, however, that the new capacity will not be available before the end of 2027, so current order backlogs will not benefit in the short term. The press release does not give the size of the plant or the number of jobs.