Ontario Construction News staff writer
Hitachi Energy will invest $479 million in a new transformer insulation manufacturing facility in London, Ont., bringing production of a critical component for electrical transformers to Canada for the first time.
The 21,000-sq. m. facility is expected to be completed by 2028 and create more than 100 permanent skilled jobs. It will manufacture electrical insulation pressboard and laminates used in transformer production and operation.
The project will establish Canada’s first pressboard manufacturing line and Hitachi Energy’s first in the Americas, bringing production closer to North American transformer manufacturers facing supply constraints for specialized insulation materials.
The federal government is contributing $20 million through the Strategic Response Fund, while the Ontario government is providing up to $20 million through the Invest Ontario Fund. Natural Resources Canada is contributing an additional $10 million to Hitachi Energy Canada Inc.
Electricity demand is increasing as industrial projects, artificial intelligence and data centres, expanding communities and electrification place greater demands on power systems. Transformers are essential to electricity transmission and distribution, but manufacturers have faced global supply constraints affecting production.
“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 and components in Hitachi Energy’s transformers business unit.
“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,” he said.
Pressboard insulation provides electrical insulation and supports cooling within transformers. Its quality and consistency are important to transformer performance, reliability and service life.
“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 of 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,” she said.
Industry Minister Mélanie Joly said the project would support economic growth, employment and Canada’s electricity supply chain.
“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,” Joly said.
Energy and Natural Resources Minister Tim Hodgson said the facility would also create new uses for Canadian forest products, including pulp, in energy infrastructure manufacturing.
The London project is part of Hitachi Energy’s plan to invest more than US$2 billion in strengthening the North American supply chain through 2027.
The company’s recent Canadian investments include the acquisition of London-based Canduct, a manufacturer of transformer insulation kits and components, and a $270-million expansion of its large power transformer manufacturing operations in Varennes, Que. The Varennes project is intended to nearly triple production capacity.
Ontario Economic Development Minister Vic Fedeli said the London project would create high-value jobs and support the province’s advanced manufacturing sector.Top of FormBottom of Form
