Hitachi announces $479M plan to build transformer insulation factory in London, Ont.
The 21,000-square-metre facility would be the first in Canada to produce pressboard — a material made from paper pulp that's key to keeping transformers cool.
Hitachi Energy, in collaboration with the federal and Ontario governments, has unveiled a $479 million plan to construct a new transformer insulation factory in London, Ontario. This initiative aims to meet the burgeoning demand for transformer components, driven by data centers, renewable energy, and industrial development. Bruno Melles, Hitachi’s CEO for transformers, explained the necessity of this project, stating, "All those investments are creating more demand for components, and transformers are a major element in the customer energy chain."
The 21,000-square-meter facility will be the first in Canada to produce pressboard, a crucial material for cooling transformers, previously sourced from Europe. The construction is scheduled for completion by the end of 2028, with the project generating 100 permanent skilled jobs. Hitachi primarily finances this venture, with the federal government and Ontario contributing a combined $50 million.
Melles emphasized that the company is investing to enhance supply chain resilience and prevent future shortages. This aligns with Prime Minister Mark Carney's recent announcement of Canada's new electricity strategy, targeting a doubling of the electricity grid by 2050. Hitachi's move underscores the government's commitment to fostering advanced manufacturing projects and attracting global companies to Ontario.
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