Canadian Manufacturer Doubling Production Capacity to Meet Surge in Electrical Transformer Demands
TORONTO, May 31, 2023 (Newswire.com) - The Canadian division of Japanese giant JFE Holdings continues to lead the way in the rapidly growing demand for electrical steel materials and components needed to build our clean electrical energy future.
Ron Harper, President and CEO of JFE Shoji Power Canada, said it is through collaboration with strategic partners that JFE seeks to stay ahead of the growing market demand. "I am very happy to announce that we are continuing to invest more in the machinery and people needed to continue to expand our production of electrical steel components for power and distribution transformers. By the end of 2023, new equipment will be installed that will increase our production capacity for distribution transformer core components by a minimum of 40%, and our production capacity of large power transformer core components by more than double, as compared to our early 2023 production rates", Harper said.
This severe increase in demand for electrical transformers has been garnering more attention lately within the industry and government officials both in Canada and the USA. The surge is being driven by the construction of new renewable energy systems, the need to replace an aging grid infrastructure, the need to quickly expand the electrical grid for the conversion to electrical transportation, zero emission vehicles, and the expansion of many other electric devices needed in our modern society. The incoming wave of demand is also putting a strain on the supply chain of materials and parts production equipment.
Harper believes the time to act is now to decarbonize our energy systems and increase their efficiency for the health of our planet and our future generations. "We have just launched a planning project with our strategic clients to assess how much further investment beyond what is currently planned is needed over the next few years", Harper said. "It is JFE Shoji's commitment to continue to serve the market and our strategic clients to support their growth objectives and plans."
JFE has seen the greatest demand increase from residential distribution transformers and large power transformers. The company's engineering and production teams are working hard to increase the pace of capacity expansion. "We are placing a priority on the safety of our teams, while significantly increasing the level of process automation to build supply chain capacity, resiliency, and sustainability", Harper said.
About JFE Shoji Power Canada
JFE Shoji Power Canada is the largest producer in North America of specialized electrical steel core products that go into a wide range of electrical transformers. Electrical steel coils are sourced from North America and around the world and converted into high precision steel components which are then supplied to North American OEMs.
Source: JFE Shoji Power Canada Inc