Hitachi Energy, a wholly owned subsidiary of Hitachi, will invest CAD $479 million (more than $330 million) in its insulation and components business in North America with the construction of a new Transformer Insulation Factory in London, Ontario, Canada.
The investment will establish a critical manufacturing capability that does not currently exist in Canada, strengthening the domestic and North American supply of critical transformer insulation materials while supporting growing electricity demand.
In support of this initiative, the Government of Canada announced a CAD $20 million investment through the Strategic Response Fund (SRF), the Government of Ontario announced an up to CAD $20 million investment through the Invest Ontario Fund, and Natural Resources Canada provided an additional CAD $10 million to Hitachi Energy Canada Inc.
Expected to be completed by 2028, the planned 21,000-square-meter facility will manufacture electrical insulation pressboard and laminates critical to transformer production and operation and is expected to create over 100 permanent skilled jobs. Featuring Canada's first pressboard manufacturing line and Hitachi Energy's first in the Americas, the facility will bring production of a critical transformer insulation material closer to the North American market.
"At Hitachi Energy, we are investing not only in manufacturing capacity but also in the infrastructure that underpins the future of energy. The new Transformer Insulation Factory will strengthen supply resilience, support our customers' growth ambitions, and help address one of the most critical bottlenecks in transformer manufacturing," said Helmut Bockshammer, Global Product Group Manager for Insulation & Components, Business Unit Transformers at Hitachi Energy. "As electricity demand continues to rise, we are taking decisive action to ensure the industry has the materials and capabilities needed to build the grids of tomorrow."
The new facility will further strengthen Hitachi Energy's global manufacturing network, complementing existing insulation operations globally and creating a more robust supply ecosystem for transformer manufacturers worldwide.
"Canada is strengthening its electricity system to build a more connected, reliable, and efficient grid. By investing in the critical infrastructure needed to power our future, we are supporting economic growth, creating good-paying jobs, and strengthening Canada's economic security," said the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions. "Our government's investment in Hitachi is delivering real results through the National Electricity Strategy and is securing Canada's energy future."
"This project demonstrates how we can create high value uses for Canadian forest products like pulp in the energy infrastructure that powers our economy," said the Honourable Tim Hodgson, Minister of Energy and Natural Resources. "By supporting advanced manufacturing, strengthening Canada's electricity supply chains and opening new markets for forest products, this project will help build a stronger and more resilient Canadian economy while advancing the vision set out in the Forest Sector Strategy for Canada and the National Electricity Strategy."
"In the face of global economic uncertainty, our government continues to foster the competitive conditions needed for global companies to confidently expand their presence in Ontario and invest in long-term projects," said the Honourable Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade. "We are proud to stand as a partner to Hitachi Energy's latest investment, which will create new, high-value jobs for local workers and further position Ontario as a central hub for advanced manufacturing projects powering the economy and future."
