Rex Power Magnetics Announces Plans and Progress Towards Expansion of Production Capacity

Rex Power Magnetics is building on its momentum for enhancing productivity and overall capacity.

This year, a new 60,000 square foot facility is being brought online. This factory is immediately adjacent to our main plant in Concord, Ontario. This addition will enable greater throughput and shorter lead times for Medium Voltage Power Transformers, as well as for Low Voltage Distribution Transformers.

The new space will also update and enhance the technologies and automation within our processes, enhancing our production efficiency and product quality. Much of the space will be devoted to an advanced sheetmetal fabrication space, complete with an all new environmentally friendly automated 5-Stage Powder Coating Paint Line.

In 2023, Rex had already announced the opening of a dedicated 50,000 square foot plant in Etobicoke, Ontario, devoted exclusively to the production of Standard Specification Commercial-Use transformers. That plant continues to ramp up this year, as more equipment comes online and our floorplan reaches its final form. In this space, Rex produces high quality, Made in Canada transformers, in common North American 1-phase and 3-phase specifications. Transformers are produced to be in stock, ready for immediate shipment.

Pending Tariff Action

September 03, 2024

Information regarding pending Candian protectionist measures & the effect on transforer prices

The Federal Government of Canada has announced that it intends to apply a 25% surtax on imports of steel and aluminum from China, effective October 15th, 2024. This bulletin covers the effect this will have on transformer pricing and Rex’s measures to mitigate the effect.

The Government’s measures are intended to react to the “unfair, non-market policies and practices” of China, primarily for the Electric Vehicle (EV) industry; a 100% surtax will apply to selected automobiles. However, a 25% tax on Aluminum and Steel products is planned as well, to harmonize with recently adopted measures of Canada’s key economic partners.

Rex’s supply chain for raw material inputs such as Aluminum and Transformer Core Steel is diversified to include numerous global partners, including China. While there may be a net economic and benefit to Canada, for Transformer manufacturers it will result in increased costs. The precise details of the trade action are not yet finalized. Precisely which commodities are included will be known on October 1st. In the meantime, Rex’s management highlights the following:

• A material shortage condition is not anticipated to arise from this action.
• Depending on which commodities are included in the action, and the Rex product under consideration, price increases may range from 1 – 7%.
• Rex Power Magnetics has leveraged its recently acquired additional factory floor space and strong financial backing to accumulate an abundance of raw materials that will allow a phased, managed transition to the higher cost basis, should it be required.
• In the past 12 months, Rex has increased its production capacity substantially; for Low Voltage distribution transformers, lead times are in the range of 2-3 weeks. Rex can respond to new inquiries to secure new transformers at present price levels.
• As always, for orders that are already released-to-production with a set ship date, pricing is fixed and not subject to change.
• For orders that are on hold for approval: Following October 1st, Rex will review the final ruling of the Government of Canada, and accordingly contact order administrators regarding possible price increases with the
• following options:
  • The order may be released within 30 days without price impact.
  • The order can be amended to a new price that will account for the tariff condition.
  • The order can be cancelled subject to the applicable cancellation terms.

Download As PDF

Rex Completes first phase of Operational Scale Up

With Government of Canada support, through the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), Rex Power Magnetics has reached its first major milestone in its planned Operational Scale-Up. In 2022, Rex decided to endeavor to significantly expand its manufacturing capacity by investing in additional factory space and innovative productive technologies. As of August 29, Rex’s new “Leading Road” factory in Etobicoke, Ontario, received CSA and UL approval for manufacture of Dry Type Transformers. As of September 4, Rex considers this factory to be online and operational, producing transformers at an initial pace of 20 units per day.

This 50,000 ft2 facility is dedicated to producing standard transformers. The machinery, tooling, and material flow is designed for efficient and streamlined production of large runs of such transformers. This will permit Rex to have most standard transformer models in stock and ready to ship, while reining in the problematically long lead times that are prevalent in the transformer market of late.

Announced September 15, at our Concord facility, by Francesco Sorbara, member of Parliament for Vaughan—Woodbridge, on behalf of the Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario, FedDev Ontario’s investment of nearly $4 million will help the Leading Road factory bring more facility services and equipment online in the weeks ahead, broadening the range of transformers that could be manufactured there. As more personnel are trained, Rex expects daily output to reach 50 transformers. However, this will still be only the beginning.

FedDev Ontario’s investment will facilitate the next phase of this Scale Up, which involves the implementation of more advanced innovative manufacturing systems at Rex’s primary factory at “Basaltic Road,” located in Concord, Ontario. With the nearby Leading Road operation producing standard transformers, our larger Basaltic Road factory will be retooled to permit greater capacity, operational control, and responsiveness for special-specification transformers, as well as Medium Voltage (MV) power transformers.

With this Scale-Up, Rex believes it is better positioned to support commercial and industrial growth throughout Canada, USA, and export markets. This will enable Rex to better support the North American transition to renewable power infrastructure. With Rex’s efforts to keep its expanded operations local and within the Greater Toronto Area, Rex will uphold its high standards for design integrity, quality manufacturing, and customer service. Rex continues to pursue a strategy of vertical integration and centralized control of its operations, taking full responsibility for product quality and integrity. At the same time, Rex remains committed to investing in the local economy, talent pool, and community.

 

Updated catalogs and guide specs

Rex Power Magnetics has posted an updated catalog for General Purpose Distribution transformers. The catalog features updated electrical and dimensional information for isolation transformers, autotransformers, K-Rated and drive Isolation transformers, encapsulated transformers, and sealed (non-ventilated) transformers.

The new catalogs are complimented by new Product Guide Specifications, which can be a handy reference for specifying engineers, as well as for general reference.
These downloads are available online, in the downloads section, at www.rexpowermagnetics.com

For your convenience, the following links are also available

Catalogs:

• Dry Type Distribution Transformer [English]
• Dry Type Distribution Transformer [French]

Product Guide Specifications

• Distribution Isolation Transformers (≤1,000 kVA, ≤1.2kV Class)
• Autotransformers (≤1,000 kVA, ≤1.2kV Class)
• Encapsulated Transformers (≤150 kVA, ≤0.6 kV Class)
• Mini Power Centers
• RC Snubbers

Upcoming Changes to enclosure sizes

Important Upcoming Changes to standard enclosure sizes

Rex Power Magnetics is announcing a significant design change to its standard enclosures.

This change will affect all ventilated transformers 15 kVA and up.

The reason for the change stems from DOE 2016 and NRCAN 2019 efficiency changes; Rex’s designs have been improved and optimized to reduce the amount of valuable floorspace required for most commonly ordered ratings.

The new designs for each enclosure size have the same width and depth as the outgoing design, but the transformer height is increased (3” to 12” depending on the enclosure). Floor mounting dimensions are not affected. The new taller enclosures will permit many kVA ratings to drop down one size, meaning a smaller package overall versus prior to the change. Additionally, each kVA rating will have one corresponding enclosure, regardless of conductor type or temperature-rise level.

The switch-over date for the new enclosure size will be April 1st, 2019, meaning transformers shipping on that day or later may utilize the new sizes.

Rex will accomodate any requests for the old style to be retained when requested or specified by means of approval drawing process. Details and dates for the transition are below.

This bulletin contains a table that compares the old sizes with the new.

Milestone Dates

As of March 4th, 2019, Rex will circulate this bulletin to advise customers of the upcoming change. For new orders shipping beyond April 1st, customers should be aware that the new sizes will be used. For customers who are sensitive to the enclosure dimensions, requiring the old enclosure sizes to be retained, Rex’s Sales must be notified with sufficient advance notice prior to scheduled shipment. This can be done in two ways:

1. Express written communication to our inside sales, who will note the requirement in the part number.
2. Approval drawing process. As always, the approval drawing process assures compliance to drawing.

If you already have an order in our system, scheduled for shipment after April 1st, that may be affected by this dimension change, Rex may produce your transformer with the old enclosure size, or the new one. For customers who wish to specify the enclosure size, Rex’s Sales must be notified as with new orders.

The Rex Power Magnetics website makes available drawings for convenient reference to many of the most commonly ordered transformers. All of the drawings affected by this change will be updated over the course of the month, and it is anticipated that the transition will be complete before April 1st.

 

Dry Type Transformer Minimum Efficiency Rules (Canada)

SUMMARY (UPDATED JANUARY 30th, 2019)

• Natural Resources Canada (NRCan) has announced that it will adopt a new set of minimum efficiency standards for Dry-Type Transformers that are sold in Canada.
• This will have a significant impact for distributors and end users in all Canadian provinces besides Ontario; In Ontario, the Ministry of Energy had already adopted the higher efficiency levels as of 2018. Across the country, the new rule takes effect on May 1st, 2019.
• The rule replaces the current minimum efficiency level, known as CSA C802.2-12. The new efficiency level will likely be commonly reffered to as NRCan 2019.
• With this change, the Canadian (NRCan 2019) and US (DOE 2016) standards will be largely harmonized. Minor differences exist; Rex has another document available that offers an in-depth analysis.
• With NRCan 2019, the increase in the required minimum efficiency level is significant, leading to downstream savings in electrical costs for the owner. The transformer’s energy losses are reduced by 29%-36%, depending on the kVA, which also translates into a positive environmental impact. The impact on up-front cost is also significant: up to 30% more expensive, depending on the kVA, and other selected features.

The official government notification of the upcoming change is published here: http://gazette.gc.ca/rp-pr/p2/2018/2018-10-31/html/sor-dors201-eng.html

Rex has been designing and producing CSA and UL approved transformers at the NRCan 2019 efficiency level, and higher, for over 5 years.

Compliant transformers are labelled under the “Green Line” Trademark

Changes for Transformer Markings & Dimensions

• As part of the transition to NRCan 2019 efficiency levels, Rex will begin a transition in our standard enclosure designs. New standard enclsorue will be taller, but there will be no change to width or depth. Details will be provided soon.
• As always, ethe efficiency level is indicated in the part numbering. NRVan 2019 transforemr will have part numbers ending with the suffix “/Z3” versus “/Z” for C802.2-12.

Upcoming Milestone Dates

• The last date on which Rex Power Magnetics may manufacture a transformer for Canada at the old C802.2-12 level is April 30th, 2019.
• For Low Voltage (Distribution) Transformers that are to be built to the outgoing C802.2-12 standard, Rex recommends release to manufacture by March 1st, 2019.
• For new orders in March, Rex may be able to accept non NRCan 2019 transforemrs on a rush basis, depending on factory loading. Rex cannot store any transfomers for later delivery.
• For Medium Voltage (Power Transformers) that are to be built to the outgoing C802.2-12 standard, Rex requires release to manufacture by February 8th 2019, with a scheduled ship date prior to May 1st.

NRCAN 2019 AND ONTARIO GREEN ACT

NRCAN  2019 AND ONTARIO GREEN ACT – ON REG.404/12

New higher efficiency levels for certain transformers became effective in the US market as of January 2016 (U.S. DOE 2016).

Similar requirements came into effect in Ontario (Canada) beginning January 2018. Other Canadian provinces are to implement the same changes as Ontario starting May 1, 2019.

It is the customer’s responsibility to ensure the transformers meet the mandated efficiency level in the intended jurisdiction of installation.

More details availble from Natural Resources Canada: www.nrcan.gc.ca/energy/regulations-codes-standards/products/6875 

About NRCan 2018 ENERGY EFFICIENCY REQUIREMENTS IN ONTARIO (updated 12/21/2017)

As you are aware Natural Resources Canada (NRCan) started a process to adopt higher efficiency levels for dry Type Transformers that are harmonized with DOE2016 (USA Department of Energy) efficiency levels currently in effect in the USA. These NRCan regulations were originally intended to come into effect January 1 2018. However, this has since been delayed and the earliest possible effective date for The NRCan higher efficiency regulation in Canada is now early 2019.

Due to the jurisdictional separation of federal and provincial governments in Canada, federal and provincial legislation for energy efficiency must be complementary for it to be meaningful. For minimum energy efficiency requirements for dry type transformers the NRCan legislation establishes the requirements for importation into Canada and movement of goods within provincial borders and individual provincial legislation establishes the same requirements within each province.

In anticipation of the NRCan legislation originally intended for January 1 2018, The Ontario Ministry of Energy established legislation to also become effective as of January 1 2018 for Ontario. However, to our knowledge no other province in Canada has established legislation in this regard to date.

This unintentional difference in effective dates of this legislation cannot be readily corrected by Federal or Ontario Provincial legislatures as rescinding or expediting legislation is neither possible nor practical.

We have consulted with the Ontario Ministry of Energy and they have stated that “…there are no enforcement provisions…However, we (the Ministry) expect manufacturers and dealers selling in Ontario to comply with the regulation….manufacturers include all manufacturers selling in Ontario (not only Ontario based manufacturers).”

Rex Power Magnetics supports the shift to these more stringent efficiency requirements and is fully prepared to offer product and pricing that comply with current and future higher efficiency levels. Product intended for Ontario will be quoted to meet Ontario efficiency regulations. Product intended for all other provinces or those that are exempt from these regulations will continue being priced to meet the current NRCan energy efficiency requirements

We regret the confusion that this lack of legislative clarity has created in the Ontario market. Please do not hesitate to contact us for any questions you may have.

Rex Power Magnetics

2018 Price Adjustment

November 28, 2017

To our Valued Customers

Subject: Price Adjustment Notice

Our last price adjustment was announced 2 years ago. During this time the weakness of the Canadian dollar vs. USD persisted while the price of raw materials has increased significantly. Copper & Aluminum are up 29% and labour costs continued to increase due to both inflationary and legislated wage and benefit increases.

Rex was successful in offsetting these cost increases through productivity improvements over the past two years. However, with cost of raw materials projected to continue their upward movement and the weakness of the currency to persist into the foreseeable future we are forced to announce a price adjustment effective as of January 1, 2018.

This price adjustment will vary from 0% to 8% depending on type and size of the transformer. The average adjustment for Copper wound units will average about 5% while Aluminum wound units will increase by an average of 3%.

In the next few weeks our representatives will supply new price sheets effective in January 1, 2018. Purchase orders received up to December 31, 2017 will be honored at the current price levels but they must be for immediate shipment. Outstanding orders currently in the approval stage and not released for shipment prior to January 31, 2018 must be renegotiated at the new price levels.

Ontario customers will also receive price lists for transformers which meet the higher efficiency requirement that relates to Ontario efficiency legislation that becomes effective in January 1, 2018.

We ask for your understanding and remain committed to serve you responsibly and reliably with leading technology power magnetic products to meet your power distribution needs.

Please do not hesitate to contact us with your comments or if you require further information.

Sincerely yours,
Rory Thomson
Manager, Sales and Marketing
REX POWER MAGNETICS

CLOSURE IN MANUFACTURING

Our manufacturing facilities will be closed for two (2) weeks to undergo maintenance starting July 24^th, 2017.

• Full production will resume on Tuesday August 8^th, 2017.
• Monday August 7^th is a holiday and all departments will be closed.

Customer Service personnel will be available throughout the closure to respond to inquiries during regular business hours. Scheduled delivery of items already on order will not be affected by this closure.