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Helios Technologies Executing Augmented Strategy; Opens New Balboa Facility in Mexico to Support Capacity Expansion and Advancing Innovation Across its Electronics Segment

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Helios Technologies, Inc. (HLIO) announces the expansion of its Tijuana, Mexico facility, adding 68,000 square feet to support growth in the Electronics segment. The new building will enhance capacity for product development and system sales, showcasing the Company's commitment to innovation and customer needs.
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The expansion of Helios Technologies' facility in Tijuana by 68,000 square feet is a strategic move aimed at bolstering the company's capacity in its Electronics segment. This decision likely stems from an increase in demand for the company's electronic control products, indicating a positive outlook on customer needs and market growth. The fact that this expansion is part of Helios' 'in the region for the region' strategy suggests a focus on localization, which may reduce shipping costs and lead times, potentially improving the company's competitive position and customer satisfaction.

Moreover, the facility's expansion could be a signal to investors about Helios' commitment to long-term growth. By increasing production capabilities, Helios is positioning itself to meet future demand and possibly gain a larger market share. This proactive approach to capacity management could be seen as a positive indicator of the company's operational foresight and financial health.

The capital expenditure involved in expanding the Tijuana facility represents a significant reinvestment into Helios Technologies' operations. This expansion can be expected to lead to an increase in the company's assets and may affect its cash flow in the short term. However, if the company's growth projections are accurate, the expansion should translate into increased revenues and, potentially, profits over time.

Investors should consider the implications of this expansion on the company's balance sheet, including potential increases in depreciation expenses and how the financing of the expansion might affect the company's debt levels. The announcement also underscores the company's confidence in its intellectual property portfolio, which could be a critical driver of future revenue through innovation and new product development.

Helios Technologies' expansion aligns with industry trends where companies are increasingly investing in automation and control technologies to enhance efficiency and productivity. The emphasis on intra- and inter-segment system sales could indicate a strategic move towards integrated solutions, which is a growing demand in the industrial sector. This trend is driven by the need for more complex and interconnected systems that can offer end-to-end solutions to customers.

Additionally, the location of the expansion in Tijuana, Mexico, highlights the importance of nearshoring, where companies are looking to reduce reliance on distant supply chains. This can lead to improved supply chain resilience and responsiveness to market changes. Helios' investment in this region could provide a competitive edge by leveraging the manufacturing capabilities and cost advantages present in Mexico.

SARASOTA, Fla.--(BUSINESS WIRE)-- Helios Technologies, Inc. (NYSE: HLIO) (“Helios” or the “Company”), a global leader in highly engineered motion control and electronic controls technology, announced its operating company Balboa will host its official ribbon cutting ceremony today, unveiling a 68,000 square foot expansion of its Tijuana, Mexico facility. Ambassadors from the Company as well as esteemed local officials of Tijuana will be on hand to witness the ceremony.

New building in Tijuana, Mexico adding 68,000 square feet of capacity (Photo: Business Wire)

New building in Tijuana, Mexico adding 68,000 square feet of capacity (Photo: Business Wire)

In response to the growth opportunities for products from its Electronics segment, Helios has expanded into a newly constructed building adding 68,000 square feet of capacity to its existing 198,000 square foot facility. While water-based technology and software solutions remain at the core of Balboa’s expertise, the new facility supports the future growth of the Balboa business along with Helios’ overall Electronics segment, which also includes Enovation Controls and i3 Product Development. As a part of Helios’ ‘in the region for the region’ manufacturing and operating strategy, several Enovation products are already being manufactured at Balboa and this capacity expansion will enable further room for growth as Helios continues to become a global integrated operating company. The expanded space will also be leveraged for growth in intra- and inter-segment system sales, wire harnessing, and innovative product development. It showcases the Company's dedication to strengthening its leadership positions in its respective end markets while leveraging those strengths to collectively advance its technological capabilities. This will enable Helios to offer even more innovative solutions to diversified end markets.

"We have made methodical investments in the expansion of our global facilities, as it reflects the growth and opportunities we see before us," said Josef Matosevic, President and Chief Executive Officer of Helios. "This expansion marks a crucial step in the Company's commitment to meeting the evolving needs of its customers and broadening its presence in both the electronics industry as well as supporting the Company’s strategic entry into selling integrated system solutions."

Helios’ dedication to innovation and excellence has been recognized with hundreds of active, and recently filed patents and trademarks. These patents showcase a commitment to pushing the boundaries and introducing new and groundbreaking solutions. The Company’s collection of intellectual property rights, trade secrets, and manufacturing know-how built from decades of operation is a testament to its commitment to deliver technology solutions to customers that ensure safety, reliability, connectivity, and control.

About Helios Technologies

Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. Helios sells its products to customers in over 90 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisition. The Company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. For more information please visit: www.heliostechnologies.com and follow us on LinkedIn.

Investor and Media:

Tania Almond

Vice President, Investor Relations and Corporate Communication

(941) 362-1333

tania.almond@HLIO.com

Deborah Pawlowski

Kei Advisors LLC

(716) 843-3908

dpawlowski@keiadvisors.com

Source: Helios Technologies, Inc.

FAQ

What is the ticker symbol for Helios Technologies, Inc.?

The ticker symbol for Helios Technologies, Inc. is HLIO.

What is the purpose of the expansion of the Tijuana, Mexico facility?

The expansion aims to support growth opportunities in the Electronics segment by adding 68,000 square feet of capacity for product development and system sales.

Who will witness the ribbon-cutting ceremony at Balboa's facility?

Ambassadors from Helios Technologies, Inc. and esteemed local officials of Tijuana will be present at the ceremony.

What does the expansion of the facility signify for Helios Technologies, Inc.?

The expansion demonstrates the Company's dedication to innovation, meeting customer needs, and strengthening its presence in the electronics industry.

Helios Technologies, Inc.

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