HPS noted that Fort Worth’s strategic location closer to key North American customers will improve its ability to deliver certain products at shorter distances compared to its operational hubs in Canada and Mexico.
“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 HPS CEO Adrian Thomas in a statement. “Demand for transformers continues to increase, particularly from large projects tied to data centers, electrification and power infrastructure.”
Thomas added that the Fort Worth facility, which is expected to begin production in stages starting in Q4 2027, will not only improve HPS’s U.S. delivery speeds but also establish a vital additional domestic manufacturing footprint. As part of these initial phases, HPS expects to invest $35 million to $36 million to equip and commission the initial production phase through a combination of existing liquidity reserves and pre-approved corporate borrowing agreements (credit facilities funding).
In June, global law firm Norton Rose Fulbright facilitated a $450 million credit agreement between HPS and financial investors J.P. Morgan Chase, National Bank of Canada and Royal Bank of Canada. Under the agreement, HPS had access to up to $300 million in term debt to acquire energy storage converter provider AEG Power Solutions for approximately $258 million. The agreement also included a $150 million revolving credit facility, which will expire in Q3 2030.
HPS states the Fort Worth site could potentially support a total annual manufacturing capacity of $283 million to $284 million, as scalability and market demand increase for key electrical infrastructure equipment.
“Over the past several years, we have made significant investments to enhance efficiency, throughput and capacity across our manufacturing operations in Canada and Mexico,” said HPS chief operations officer John Bailey.
The Fort Worth facility, Bailey added, provides HPS an opportunity to apply the manufacturing processes learned from those investments in a new U.S.-built environment designed to bolster future growth.