Marsons Forms JV With Cleanhill Partners to Tackle North America’s Transformer Shortage
Power transformer manufacturer Marsons Limited has agreed to form a joint venture with Cleanhill Partners, a New York-based private equity firm, to scale up transformer distribution, service and manufacturing across the United States and Canada. The company announced the deal on Tuesday.
The timing is deliberate. Transformer supply in North America is tight, and the company says equipment lead times now exceed 24 months.
Quick answers
- Who is involved? Marsons Limited, a power transformer manufacturer, and Cleanhill Partners, a New York-based private equity firm.
- What is the deal? A joint venture to scale transformer distribution, service and manufacturing in the US and Canada.
- Why now? Lead times for transformers currently exceed 24 months, according to the company.
- What is the long-term plan? To set up full-scale transformer manufacturing facilities in North America.
Why is there a transformer shortage in North America?
Marsons points to three sources of demand pushing the market:
- Grid modernisation projects
- Renewable energy additions
- The power requirements of data centres
All three need large amounts of transformer capacity at the same time. When supply cannot keep pace, buyers wait, and a wait of more than two years can stall projects well before construction begins. That is the gap this joint venture is meant to address.
How will the joint venture work?
The structure is a division of strengths. Marsons contributes manufacturing capability, and Cleanhill brings capital and a project network. Together they aim to build distribution, service and manufacturing operations across the US and Canada, with local manufacturing as the longer-term goal.
For buyers, the practical question is how soon that local capacity can come online. The announcement frames it as a longer-term plan, so near-term relief is more likely to come from distribution and service than from a new factory.
What does Marsons bring?
According to the company:
- A 45,000 square-metre manufacturing plant
- Annual capacity of 12,000 mega-volt-amperes (MVA), expanding to 26,000 MVA
- Existing equipment supply orders of up to 200 MVA for utility-scale projects in the US
MVA is the standard way to rate a transformer’s capacity, so the planned jump from 12,000 to 26,000 MVA means output is set to more than double. The US orders also show Marsons is already supplying that market, so the joint venture builds on an existing footing rather than starting from scratch.
What does Cleanhill Partners bring?
Cleanhill specialises in energy transition assets. Its investment portfolio spans:
- Energy storage
- Power conversion systems
- Solar tracker infrastructure
That focus matters because the same projects that need Cleanhill’s portfolio companies, such as storage and solar, also need transformers to connect to the grid.
What we don’t know yet?
The announcement leaves several details open:
- The financial terms of the deal
- The ownership split between the two partners
- Where the new manufacturing facilities will be built
- A timeline for when local production will begin
Frequently asked questions
What is the Marsons and Cleanhill Partners joint venture?
- It is a partnership to scale transformer distribution, service and manufacturing in the US and Canada, combining Marsons’ manufacturing with Cleanhill’s capital and project network.
How long are transformer lead times in North America?
- The companies say they currently exceed 24 months.
What is Marsons’ manufacturing capacity?
- A 45,000 square-metre plant with annual capacity of 12,000 MVA, expanding to 26,000 MVA.
Who is Cleanhill Partners?
- A New York-based private equity firm that invests in energy transition assets, including energy storage, power conversion systems and solar tracker infrastructure.
Will transformers be made in North America?
- That is the longer-term plan. The joint venture aims to establish full-scale manufacturing facilities in the region.
