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ERMCO will build new Arizona facility, plans to support chip manufacturing

A digital imagining of the new ERMCO facility in Waddell, Arizona
JLL Phoenix
A digital imagining of the new ERMCO facility in Waddell, Arizona

Amid higher power demands across the country, ERMCO announced Wednesday that a new distribution transformer manufacturing facility will be coming to Arizona.

The location provides protection from extreme climate and access to a skilled workforce. ERMCO CEO Tim Mills said that the new facility will help to aid the current distribution transformer shortage.

Mills said the distribution transformers are critical to the electrical grid system because they convert high voltage electricity to low voltage that can be used by commercial or residential customers.

“We service the entire United States and Arizona is a great strategic location for us because our factories are all located out East and we recognize that our customer base is totally dispersed across the entire United States,” Mills said. “So this is going to put us a lot closer to many key accounts including the major utilities in the state of Arizona.”

The project is expected to bring 500 jobs to the West Valley and strengthen the existing power grid.

Arizona’s technology industry is gaining traction from the chip manufacturing ecosystem, and ERMCO is continuing this trend.

Mills said that the company plans to help supply power to major semiconductor and data center giants.

“The product we see being built in the Waddell facility very well could be used directly by those manufacturing firms as they're building places to build semiconductors,” Mills said.

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Lilly Roseburrough is an intern at KJZZ.