GUELPH, ONTARIO -- (Marketwired) -- 10/23/14 -- 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 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."
ABOUT HAMMOND POWER SOLUTIONS INC.
Hammond Power Solutions Inc. (TSX: HPS.A) is a North American leader for the design and manufacture of dry-type custom electrical engineered magnetics, electrical dry-type and cast resin transformers. Leading edge engineering capabilities, high quality products, and responsive service to customers' needs have all served to establish HPS as a technical and innovative leader in the electrical and electronic industries. HPS has operations in Canada, the United States, Mexico, India and Italy.
ABOUT NATIONAL MATERIAL LP
National Material L.P. develops manufactures, processes, and supplies steel, aluminum, and ferrous raw materials. It offers hot and cold rolled and electrical steel, as well as galvanized, aluminized, and other coated metals; engineered pre-painted products; and rolled carbon steel from domestic and foreign mills in the United States, as well as serves as an export agent for mills in the international markets. The company has locations in the United States, Canada, Mexico, China, South America, Europe, Russia, and the Far East.
Caution Regarding Forward-Looking Information
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to among other things, HPS' strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" and words and expressions of similar import. Although HPS believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to currency rates); changes in laws and regulations; legal and regulatory proceedings; and the ability to execute strategic plans. HPS does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
Contacts:
Hammond Power Solutions Inc.
Dawn Henderson
Manager Investor Relations
(519) 822-2441 x414
ir@hammondpowersolutions.com
