Mr. Adrian Thomas reports

HAMMOND POWER SOLUTIONS INCREASES NORTH AMERICAN MANUFACTURING CAPACITY

Hammond Power Solutions Inc. has signed a long-term lease for a new manufacturing facility in Fort Worth, Tex. The facility will expand HPS's ability to serve U.S.-based customers requiring large standard and custom-engineered transformers. The Fort Worth facility is strategically located to improve proximity to key customers, shorten delivery distances for certain products and enhance HPS's ability to serve core end markets.

"HPS has built a strong manufacturing platform through its operations in Canada and Mexico, and those facilities will continue to be an important part of how we serve the North American market. This new investment in a U.S. facility is about being closer to our customers and better positioned to support the long-term demand we are seeing for our products," said Adrian Thomas, chief executive officer of HPS. "Demand for transformers continues to increase, particularly from large projects tied to data centres, electrification and power infrastructure. The Fort Worth facility gives us additional capacity in the U.S. to improve responsiveness, support shorter delivery distances for certain customers, and help us continue to provide the reliability and service our customers expect from HPS."

Production activities at the facility are expected to commence in stages beginning in the fourth quarter of 2027. Once the initial production phase commences, the facility is expected to add approximately $250-million of manufacturing capacity, based on anticipated demand and normal course operating assumptions. HPS expects to invest approximately $50-million to equip and commission the initial production phase, which it anticipates financing through its existing cash and credit facilities.

The facility was selected, in part, because of its potential to support additional capacity over time. Subject to market demand, future capital investment and other relevant factors, the site could support total annual manufacturing capacity of approximately $400-million.

About Hammond Power Solutions Inc.

HPS enables electrification through its portfolio of power conversion, power distribution and power quality solutions, including dry-type transformers, power electronics and related products used across critical electrical infrastructure and industrial applications. The company has manufacturing plants in North America, Europe and Asia, and sells its products around the globe.

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