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Hitachi Energy plans more than $330 million Ontario insulation plant. The 21,000-square-meter facility is expected to produce up to 20,000 metric tonnes of insulation materials annually and create more than 100 skilled jobs. Published Oct 16, 2026, 10:39 PM EDT Hitachi Energy plans to invest more than $330 million in a transformer-insulation factory in London, Ontario, bringing electrical-grade pressboard production to Canada and adding capacity for manufacturers in North America and global markets. The company announced the project Friday, Oct. 16, and expects the facility to be completed by 2028. The planned 21,000-square-meter factory would make up to 20,000 metric tonnes of electrical-grade pressboard and laminated insulation materials each year. Pressboard insulates components inside high-voltage transformers and supports their cooling process. The project would bring pressboard production to Canada and mark Hitachi Energy's first such operation in the Americas. Production is expected to supply the company's transformer operations in Varennes, Quebec, along with other transformer and insulation manufacturers in North America and worldwide. Hitachi Energy expects the factory to create more than 100 permanent skilled jobs. It is planned for London's Huron Industrial Park. The federal government announced support through the Strategic Response Fund and the Investments in Forest Industry Transformation program. Ontario offered support through the Invest Ontario Fund, conditional on a definitive funding agreement. Electricity demand is being driven by grid modernization, electrification, renewable-energy deployment and data-center expansion. The factory is intended to add manufacturing capacity for materials used in high-voltage transformers, which are part of electricity systems. Helmut Bockshammer, Hitachi Energy's global product group manager for insulation and components in its Transformers business, said the project would "help address one of the most critical bottlenecks in transformer manufacturing." Hitachi Energy has tied the London project to a broader North American supply-chain investment program exceeding $2 billion over the period ending in 2027. John Kim. John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to [email protected].

Hitachi announces $479M plan to build transformer insulation factory in London, Ont. Hitachi Energy and the federal and Ontario governments have announced a $479-million plan to build a new transformer insulation factory to help meet skyrocketing demand from data centres, green energy and industrial development. "All those investments are creating more demand for components, and transformers are a major element in the customer energy chain," Bruno Melles, chief executive of Hitachi's transformers business unit, said in an interview ahead of Friday's announcement in London, Ont. "Because in every place where there is power generation and in every place where there is a connection, there is a transformer." 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 - and the first Hitachi would establish in the Americas. Currently in Canada that material sourced from Europe, Melles said. Construction is set to be complete by the end of 2028 and the project is expected to create 100 permanent skilled jobs. Hitachi is shouldering the bulk of the investment, with the federal and Ontario governments collectively contributing $50 million. Of that, $20 million is through the federal strategic response fund, $10 million is from Natural Resources Canada and up to $20 million is through the Invest Ontario Fund. The power industry has been dealing with supply chain challenges as electricity demand booms. The factory aims to ease at least one of the big pinch points. "Today we are in a situation where the industry for transformer manufacturing is going at a very high speed, but not all the industrial parts are going at the same speed," Melles, who is based in Zurich, said. "This is why we want to give a strong message to the market and say, 'We want to be an integral part of the supply chain resilience and we are going to invest in order to ensure that the market is not going to have any shortage.'" In May, Prime Minister Mark Carney announced Canada's new electricity strategy, which aims to double the country's electricity grid by 2050. "Electricity demand in Canada is growing at an unprecedented pace, something we've never seen before," said Carla Vicente, managing director of Hitachi Energy's Canadian division, in an interview. "By ensuring that we have this factory operational by the end of 2028, we will be able to respond to the higher needs and demand for the transformers that are an essential part of anything that we want to do to be able to electrify." Building new infrastructure has been a key focus for Carney's government, and several power and transmission projects have been referred to the major projects office for a streamlined review.

The Government of Canada announces significant investment to strengthen Canada's electricity and forest products supply chains. Oct 16, 2026, 09:15 ET Investment will support Hitachi Energy's new transformer insulation factory, Canada's first pressboard manufacturing facility LONDON, ON, Oct. 16, 2026 /CNW/ - Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a total federal investment of $30 million in Hitachi Energy Canada Inc., supporting a $478.8 million dollar project to establish Canada's first electrical-grade pressboard manufacturing facility in London, Ontario. As growing power demand is being driven by grid modernization, electrification, renewable energy deployment and data centre expansion, the federal government is investing to position Canada as a strategic supplier within North America's energy infrastructure supply chain and abroad. At the same time, it is supporting Canadian forest products amid unjustified tariffs and changing global pressures and the industry more broadly as it modernizes and transforms for long-term competitiveness. The federal investment includes $20 million through the Strategic Response Fund and $10 million through the Investments in Forest Industry Transformation program. This investment will help Hitachi Energy implement innovative manufacturing technologies and automation in a state-of-the-art facility to enhance production efficiency and turn wood fibre into up to 20,000 tonnes annually of electrical-grade pressboard and laminated insulation materials for high-voltage transformers. The investment will not only strengthen domestic supply chain capabilities but also support the growth and competitiveness of Canada's forest sector by creating new markets for Canadian forest products. This project will generate significant economic benefits for Canadians. As part of its commitment to growth in Canada, Hitachi Energy will maintain its existing workforce of approximately 1,250 employees and grow its Canadian workforce to 1,765 employees. This includes the creation of more than 100 new jobs at its London facility. It will also create new business opportunities for domestic suppliers, including Canada's forest products sector, by sourcing key inputs for transformer insulation materials locally. The facility will be the first of its kind in Canada and will supply Hitachi Energy's transformer manufacturing operations in Varennes, Quebec, and other transformer and insulation manufacturers in North American and global markets. The federal investment in Hitachi Energy's project is advancing the National Electricity Strategy's goals of building at scale and taking concrete steps to bolster Canada's energy security by strengthening our domestic grid and power capacity with clean, affordable and reliable energy for generations to come. The project also advances the federal government's efforts to support Canada's forest products sector as it pivots to grow, including through the upcoming forest sector strategy. The strategy-the first ever for the sector led by the federal government-will focus on creating new opportunities for Canadian forest products, supporting advanced manufacturing and innovation, and strengthening domestic value chains that connect Canada's forest sector to growing markets. In a more complex and unpredictable world, the Government of Canada is investing strategically to build clean, affordable and reliable energy systems, create new market opportunities for domestic suppliers and support sustainable growth in the forest sector. "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 well-paying jobs and strengthening Canada's economic security. Our government's investment in Hitachi Energy, along with the National Electricity Strategy, will deliver real results and help secure Canada's energy future." - The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions "This project demonstrates that there are high-value opportunities for forest products in critical energy infrastructure. By supporting innovative projects like this one, we are supporting Canadian 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 visions set out in the National Electricity Strategy and the upcoming federal forest sector strategy." - The Honourable Tim Hodgson, Minister of Energy and Natural Resources "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. 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." - The Honourable Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade "London has long been a city of builders, innovators and skilled workers, and today's announcement reinforces that proud tradition. This investment in Hitachi Energy's new facility will create opportunities for local families, strengthen Canada's energy infrastructure, and position our community at the forefront of the clean economy of the future. I am excited to welcome this investment to London and look forward to the benefits it will bring to our region for years to come." - The Honourable Arielle Kayabaga, Deputy Government House Leader and Member of Parliament for London West "This investment is a significant milestone for London and an important step forward for Canada's economy. By establishing Canada's first electrical-grade pressboard manufacturing facility in our city, we are creating local opportunities, supporting skilled jobs and strengthening London's manufacturing sector. Nationally, this project will bolster domestic supply chains, open new markets for Canadian forest products and help position Canada as a competitive leader in advanced manufacturing and energy infrastructure." - Peter Fragiskatos, Parliamentary Secretary to the Minister of Immigration, Refugees and Citizenship and Member of Parliament for London Centre "Today's announcement marks a significant step forward for Canadian manufacturing and our country's energy future. By establishing Canada's first pressboard manufacturing line here in London, we are bringing a critical capability closer to home, strengthening domestic supply chains and supporting the infrastructure needed to meet growing electricity demand. This investment reflects our long-term commitment to Canadian industry, talent and innovation in an electric economy." - Carla Vicente, Country Managing Director, Canada, Hitachi Energy Canada Inc. Quick facts * Hitachi Energy Canada Inc. is a federally incorporated corporation and a subsidiary of Hitachi Energy, based in Switzerland. Hitachi Energy operates in more than 60 countries and employs approximately 50,000 people worldwide. Its customers include electric utilities, industrial operators, renewable energy developers, transportation providers and data centre operators. * Hitachi Energy Canada develops and supplies transformers, high-voltage equipment, grid automation systems, grid integration solutions and related services for utility, industrial, transportation, renewable energy and infrastructure customers. * The Strategic Response Fund helps Canadian industries innovate, adapt and compete in a changing global economy. It supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, artificial intelligence and advanced technologies. * The IFIT program accelerates the adoption and commercialization of transformative technologies in Canada's forest sector, improving competitiveness and sustainability while diversifying revenue streams. This includes supporting innovative pulp and paper products that replace non-renewable materials, improving fibre efficiency, scaling up mass timber and prefabrication, and strengthening domestic housing production and supply chain resilience. Associated links Stay connected SOURCE Innovation, Science and Economic Development Canada Contacts: Gabrielle Landry, Deputy Director, Media Relations, Office of the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]