To sidestep U.S. trade barriers and labor shortages, Fortune-500 AFL needed a supply route that was both tariff-proof and lightning-fast. SH Power engineered a “Made-in-Mexico, Delivered-from-California” duty-free model:
• A bonded plant in Monterrey, Mexico—2.5 h from the U.S. border—runs two UL-certified shifts, outputting 2,000 sets of 500 kV hardware per shift;
• A 6,000 m² UL-listed QC hub in Ontario, California re-tests every lot (vision + tensile) within 48 h and labels “USA UL” for AFL’s direct site delivery;
• By optimizing USMCA origin rules, we keep local content >65 %, saving AFL 25 % in total landed cost and eliminating Section 301 duties.
• A 6,000 m² UL-listed QC hub in Ontario, California re-tests every lot (vision + tensile) within 48 h and labels “USA UL” for AFL’s direct site delivery;
• By optimizing USMCA origin rules, we keep local content >65 %, saving AFL 25 % in total landed cost and eliminating Section 301 duties.
The model powered 147 km of AFL’s Pacific Coast 500 kV corridor six months ahead of schedule in 2023–2024; a Phase-II capacity-doubling plan is now underway to unlock an additional 30 % lead-time advantage by Q3 2025.
