Hitachi Energy invests over $330M in transformer insulation factory in Ontario
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.
Hitachi Energy, a wholly owned subsidiary of Hitachi, Ltd., will invest CAD 479 million (more than USD 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 company said in a press release.
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 up to CAD 20 million in 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, Hitachi Energy said.
“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 - 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.”
Pressboard insulation enables compact, safe, and cost-effective transformer designs while providing critical electrical insulation and supporting the cooling process within transformers.
“Canada’s National Electricity Strategy sets an ambition to double the capacity of the country’s electricity grid by 2050, and delivering that growth will require a stronger domestic supply chain,” said Carla Vicente, Managing Country Director, Hitachi Energy Canada. “This investment supports that ambition by bringing new manufacturing capacity for a critical transformer component to Canada and helping build the infrastructure that will power Canadian communities, industries and economic growth for generations to come.”
The new facility is expected to further strengthen Hitachi Energy’s global manufacturing network, complementing existing insulation operations globally and creating a more robust supply ecosystem for transformer manufacturers worldwide.
“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 Mélanie Joly, Minister of Industry. “Our government’s investment in Hitachi is delivering real results through the National Electricity Strategy and is securing Canada’s energy future.”
Tim Hodgson, Minister of Energy and Natural Resources, said that by supporting advanced manufacturing, strengthening Canada’s electricity supply chains and opening new markets for forest products, this project would help build a stronger and more resilient Canadian economy.
