ERMCO, an Arkansas Electric Cooperatives Inc. subsidiary, is expanding production of its three-phase transformers into Arizona to help meet increasing demand for the critical equipment.

“As we face another season of severe winter storms, it becomes clearer than ever that transformers are the backbone of America’s electrical grid,” said Tim Mills, president and CEO of the Dyersburg, Tennessee-based company.

“In times like these, it is critical to have a geographically dispersed manufacturing footprint because our work is about keeping homes warm, businesses running and America moving forward.”

The Arizona plant is part of ERMCO’s three-phase transformer manufacturing initiative that includes increased production at its facilities in Dyersburg and Athens, Georgia. It is the first expansion west of the Mississippi River for the 54-year-old transformer manufacturer.

Located 30 miles west of Phoenix, the 566,121-square-foot facility is being prepared to produce transformers starting in 2027 with a workforce that ERMCO said will ramp up to 541 and include long-term jobs in engineering, skilled trades and operational support.

“This expansion is about more than building a facility—it’s about building the future,” Mills said. “Our goal is simple: Power the grid and power progress. This investment ensures ERMCO is ready to meet the challenges of tomorrow.”

Skyrocketing electricity demand is accelerating the need for distribution transformers as more utilities upgrade infrastructure and replace transformers to modernize the grid and meet load growth, he said.

Mills lauded the strategic advantages Arizona offered, including reduced transportation time and costs for more efficient transformer delivery and the support of AECI for making the new plant possible.

“Having a parent company that understands the essential nature of our product and the importance of maintaining a secure supply chain allowed this decision to be viewed through more than just a financial lens,” he said.