This strategic move is designed to help us meet the growing demands of our key markets and ensure we continue to lead in product innovation and delivery.

Hammond Power Solutions is pleased to announce that we are investing an additional $20 million over the next two years to expand our production capacity and support our continued growth. This strategic move is designed to help us meet the growing demands of our key markets and ensure we continue to lead in product innovation and delivery.

"Hammond continues to experience favorable industry tailwinds for certain products driven by the electrification of our economy," said Adrian Thomas, CEO of Hammond Power Solutions. "These investments will be made over the course of 2024 and 2025 to expand production in Monterrey to build custom power transformers, which will eliminate current capacity bottlenecks and significantly increase our revenue capacity."

This expansion is a key element in HPS's broader strategy to strengthen its power transformer portfolio, which includes large, high-power transformers essential to various commercial and industrial markets. By enhancing production capabilities in Monterrey, HPS will be able to reduce lead times and improve its North American delivery platform.

Since 2022, HPS has invested approximately $80 million in capacity increases for its entire product range. The most recent development is the new facility in Monterrey to build small low voltage and power quality products, which opened at the end of the second quarter of 2024.

The planned $20 million expansion will further reinforce HPS's ability to meet rising customer expectations and capitalize on favorable market conditions. The expansion in Monterrey will primarily manufacture low voltage products.

For more information on how this expansion may impact you, please reach out to your Hammond Power Solutions representative.

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About HPS
Hammond Power Solutions Inc. (TSX: HPS.A) is a North American based leader in the design and manufacture of standard and custom electrical dry-type and cast resin transformers and reactors and power quality solutions. 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 electroindustry. HPS has operations in Canada, United States, Mexico, and India, and is Rockwell Technology Partner in the Americas and EMEA.

(Europe, Middle East & Africa). Learn more at hammondpowersolutions.com and follow HPS on LinkedIn, X, and Facebook.