SANMINA CORPORATION ANNOUNCES EXPANSION OF ENERGY BUSINESS WITH NEW STATE-OF-THE-ART FACTORY IN HOUSTON, TEXAS
Sanmina (NASDAQ: SANM) announced an expansion of its Energy business with a new state-of-the-art factory in Houston, Texas focused on the US energy market.
Sentiment and the balance of points
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Rhea-AI Summary
Sanmina (NASDAQ: SANM) announced an expansion of its Energy business with a new state-of-the-art factory in Houston, Texas focused on the US energy market.
The facility will build medium-voltage distribution transformers, instrument transformers and switchgear. Production is expected to start in 2027 and the company says initial customer commitments are already in place. Sanmina also entered an agreement with Končar to co-design a custom medium-voltage transformer and to explore additional US market collaboration.
Positive
- New factory announced in Houston focused on US energy market
- Production expected 2027 with initial customer commitments in place
- Signed agreement to co-design a medium-voltage transformer with Končar
Negative
- None.
Details
News Market Reaction – SANM
On Dec 16, the day this news came out, SANM closed 7.16% below the previous close.
Data tracked by StockTitan Argus for the Dec 16 session.
Key Figures
- Production start
- 2027
- Expected start of production at new Houston energy factory
Historical Context
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FY25 and Q4 results with higher EPS, margin expansion, and strong guidance.
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Completion of ZT Systems acquisition and strategic manufacturing partnership with AMD.
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Announcement of date and access details for FY25 earnings conference call.
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Strong Q3 results with solid revenue, margins, cash flow, and positive Q4 outlook.
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Scheduling and webcast details for Q3 fiscal 2025 earnings conference call.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
medium-voltage distribution transformers technical
instrument transformers technical
switchgear technical
high-voltage equipment technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
In parallel, Sanmina also announced it has entered into an agreement with Končar - Electrical Industry Inc. ("Končar") to co-design a custom medium-voltage transformer for Sanmina, and to explore more opportunities for the companies to work together in support of Končar's growth plans for the US market.
Commenting on the investment, Jure Sola, Chairman and CEO of Sanmina noted: "We are very pleased to announce this expansion of Sanmina's Energy-related business. We believe that the transmission, distribution and storage of electric power provides an excellent fit for Sanmina's core competences in engineering and manufacturing to deliver cutting-edge medium-voltage and high-voltage equipment."
"We are delighted to open the relationship with Sanmina with an opportunity to call on our many years of transformer design and manufacturing experience to design a medium-voltage transformer for Sanmina. Looking at the bigger picture, we are most excited by the potential to accelerate Končar's growth in the US market by partnering with Sanmina," noted Gordan Kolak, CEO of Končar Group.
About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial, medical, defense and aerospace, automotive, communications networks and cloud and AI infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.
About Končar
With its solutions, experience, and expertise KONČAR spearheads the energy transition and drives the decarbonization of the Croatian and global power sector. The company is constantly developing new advanced solutions and business models that benefit the community and the environment. Over the century of excellence, KONČAR has relied on vitality, innovation and competitiveness, to develop high-tech products for global markets. Today, the company stands as a regional leader in power engineering and a top manufacturer of rail vehicles.
Sanmina's Safe Harbor Statement
The foregoing, including the discussion regarding Sanmina's ("the Company") future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the Company, changes in customer requirements and in the volume of sales to principal customers, the ability of Sanmina to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions, and competition and technological change. The Company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in our Company's annual and quarterly reports filed with the Securities and Exchange Commission.
Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610
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SOURCE Sanmina Corporation
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