Hitachi Energy plans a C$479 million (more than US$330 million) factory in London, Ontario, to make transformer-insulation materials, adding Canadian capacity as electricity demand and supply-chain pressure rise.
The federal government values the project at C$478.8 million. Hitachi Energy says the planned 21,000-square-meter facility would establish Canada's first pressboard production line and make electrical-grade pressboard and laminated insulation materials. Federal projections put the plant's maximum annual output at 20,000 tonnes. Ottawa says its products would supply Hitachi Energy's transformer operations in Varennes, Quebec, and other manufacturers in North American and global markets.
The federal government announced C$30 million in support, including C$20 million through the Strategic Response Fund and C$10 million through the Investments in Forest Industry Transformation program. Ontario announced up to C$20 million through the Invest Ontario Fund, bringing announced public support to as much as C$50 million.
Hitachi Energy expects more than 100 permanent skilled jobs at the plant. The federal government says the company plans to maintain about 1,250 employees in Canada and expand its workforce to 1,765, including more than 100 new jobs at the London facility. Bruno Melles, chief executive of Hitachi Energy's transformers business unit, told The Canadian Press that pressboard used in Canada is currently sourced from Europe.
Ottawa says the plant will use wood fiber and could create opportunities for Canadian suppliers, including companies in the forest-products sector. The federal government also points to tariffs and shifting global pressures facing that industry.
Hitachi Energy links the project to demand from industrial development, AI and data centers, electrification and growing communities. The company also says specialized insulation materials are in short supply worldwide. Canada's National Electricity Strategy aims to double the country's electricity-grid capacity by 2050.
Hitachi Energy says the London project is part of a commitment to invest more than US$2 billion in North American supply chains through 2027. Hitachi Energy expects the London facility to be completed by 2028.
