HAMMOND POWER SOLUTIONS INC. (HPS), a leading manufacturer of dry-type and cast resin transformers and related magnetics, announced that it has entered into a joint venture with National Material LP (NMLP) to manufacture transformer cores for the electrical transformer industry. Pursuant to the joint venture, a new company will be created in which HPS will have a 55% ownership interest.
Under the joint venture agreement, HPS and NMLP will share financial and technological resources with the intent to construct and operate a world-class core manufacturing facility. This facility is expected to be fully operational in early Quarter 4, 2015.
Bill Hammond, Chairman & Chief Executive Officer of Hammond Power Solutions Inc. commented, "Through this partnership HPS and NMLP will deliver quality core solutions which will also meet new U.S. energy efficiency regulations commencing in 2016.
The product line will carry a new brand name and will be sold in the United States and Mexico.
Mr. Hammond further commented, "We are extremely pleased with today's announcement; by building on the strengths of both companies, we are confident that this venture will enhance our performance going forward. Today is the culmination of long-term partners working together closely to bring value to our customers, communities and shareholders."