Prolec GE Invests an Additional $85 Million in Support of North American Electric Grid Goals

Rhea-AI Summary

Prolec GE (Ticker: PGE) plans to double its single-phase pad-mount transformer manufacturing capacity with a new facility. The company will invest $85 million to increase its manufacturing capacity in Monterrey, Mexico, reinforcing its commitment to being a strategic partner in the journey toward a sustainable energy future. Prolec GE's recent investments in support of its North American customer base exceed $145 million US.

Positive

• Investment in new facility to double manufacturing capacity
• Commitment to sustainable energy future
• Support for North American electrification goals

Negative

• None.

• Prolec GE plans to double its single-phase pad-mount transformer manufacturing capacity with new facility.
• Recent Prolec GE investments in support of the company’s North American customer base exceed $145 million US.
• Today's announcement reinforces Prolec GE's commitment to being a strategic partner in the journey toward a sustainable energy future.

MONTERREY, Mexico--(BUSINESS WIRE)-- Global energy infrastructure leader, Prolec GE, a Prolec subsidiary of a joint venture between GE and Xignux, a Mexico-based private company, today announced additional manufacturing investments of $85 million to meet unprecedented North American demand for single-phase pad-mount transformers. Prolec GE will increase its manufacturing capacity in Monterrey by equipping a new facility capable of annually duplicating the number of transformers produced at its existing Mexico facility. The company will also take this opportunity to incorporate state-of-the-art manufacturing technology to increase productivity and improve ergonomics in key areas throughout the new plant.

Prolec GE's recent $85M investment to double single-phase pad-mount transformer manufacturing capacity will help the U.S. meet its electrification goals while working together to improve grid resiliency, efficiency, and reliability on our journey toward a sustainable energy future. (Photo: Business Wire)

“We are thrilled to be investing additional time and money to increase our manufacturing capacity in support of North America’s electrification goals. With the majority of this new capacity being allocated to U.S. utility customers, Prolec GE is proud to provide the critical equipment needed to improve grid resiliency, efficiency, and reliability,” said Prolec GE CEO, Ricardo Suarez. "This investment reinforces our commitment to being a strategic partner in the journey toward a sustainable energy future."

To capitalize on production and supply chain synergies, Prolec GE’s new facility will be located less than one mile from the company’s existing location. Construction of the new plant will begin in 2024, with project completion scheduled for June 2025.

This latest Prolec GE announcement raises the company’s investment commitment to its North American customers to more than $145 million. Earlier this year, Prolec GE publicized plans to manufacture three-phase pad-mount transformers in the U.S. for its renewable energy and industrial customers by adding a production line to the company’s 500,000 square foot facility in Shreveport, Louisiana. The site will undergo additional infrastructure upgrades to accommodate capacity increases for its traditional voltage regulator and network transformer customers. Prolec GE is also investing in power transformer process improvements to increase throughput and decrease manufacturing cycle times.

About Prolec GE

Prolec GE is a joint venture between Xignux and GE, internationally recognized for quality manufacturing and reliable performance for over 25 years. The company is an electric industry leader in the Americas with six manufacturing facilities strategically located in Mexico, the United States, and Brazil and an installed product base in more than 35 countries. Its broad power transformer services offering in the U.S., as well as its wide variety of high voltage transformer components, complement Prolec GE’s full line of transformer solutions for the generation, transmission, and distribution of electrical energy for utilities, co-ops, municipalities, renewable project developers and original equipment manufacturers.

As a leading supplier in the industry, Prolec GE embraces its commitment to providing an exceptional customer experience, superior quality products, comprehensive solutions and on-time deliveries while actively developing innovative, responsible, and sustainable solutions to solve the industry’s challenges. www.prolec.energy/prolecge

About Xignux

Xignux is a leader in the energy and food industries. Based in Monterrey, Mexico, we manage a variety of companies that energize life and society to contribute to a better world, thanks to the hard work and talent of more than 30,000 employees in Mexico, the United States, and Brazil.

In the energy industry, Viakable offers electrical conductors, and Prolec specializes in energy transformation and delivery. In the food sector, Qualtia provides a wide portfolio of cheeses, cold cuts, meats, and food service, while BYDSA produces savory snacks. Through its Social Responsibility model and the Xignux Foundation, the company also contributes to society´s sustainable development with active participation in four priority areas: energy, nutrition, education, and community development.

Xignux was founded 67 years ago and the solutions from its companies reach more than 35 countries. Learn more about us at www.xignux.com.

About GE

GE (NYSE:GE) rises to the challenge of building a world that works. For more than 125 years, GE has invented the future of industry, and today the company’s dedicated team, leading technology, and global reach and capabilities help the world work more efficiently, reliably, and safely. GE’s people are diverse and dedicated, operating with the highest level of integrity and focus to fulfill GE’s mission and deliver for its customers. www.ge.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20231213263988/en/

Tammy Behrens

Director of Marketing, Communications & Branding

262-513-5401

tammy.behrens@prolec.energy

Source: Prolec GE

FAQ

What are Prolec GE's (PGE) plans for its manufacturing capacity?

Prolec GE plans to double its single-phase pad-mount transformer manufacturing capacity with a new facility in Monterrey, Mexico.

How much is Prolec GE (PGE) investing to increase its manufacturing capacity?

Prolec GE is investing $85 million to increase its manufacturing capacity.

What is the total investment by Prolec GE (PGE) in support of its North American customer base?

Prolec GE's recent investments in support of its North American customer base exceed $145 million US.

Where will the new manufacturing facility be located?

The new facility will be located in Monterrey, Mexico, less than one mile from the company’s existing location.

When will the construction of the new plant begin?

Construction of the new plant will begin in 2024, with project completion scheduled for June 2025.

What were Prolec GE's earlier plans for manufacturing in the U.S.?

Earlier this year, Prolec GE publicized plans to manufacture three-phase pad-mount transformers in the U.S. for its renewable energy and industrial customers by adding a production line to the company’s facility in Shreveport, Louisiana.