Hitachi Energy invests $479 million CAD to bring critical transformer manufacturing capability to Canada
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- New state-of-the-art London, Ontario facility will establish Canada's first pressboard manufacturing line, strengthening domestic manufacturing and North America's transformer supply chain.
LONDON, ON, Oct. 16, 2026 /CNW/ -- Hitachi Energy, a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501, "Hitachi"), will invest $479million CAD (more than $330 million USD) in its insulation and components business in North America with the construction of a new, state-of-the-art Transformer Insulation Factory in London, Ontario, Canada. The investment will establish a critical manufacturing capability that does not currently exist in Canada, strengthening the domestic and North American supply of critical transformer insulation materials while supporting growing electricity demand.
In support of this initiative, the Government of Canada announced a $20 million CAD investment through the Strategic Response Fund (SRF), the Government of Ontario announced an up to $20 million CAD investment through the Invest Ontario Fund, and Natural Resources Canada provided an additional $10 million CAD 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. Featuring Canada's first pressboard manufacturing line and Hitachi Energy's first in the Americas, the facility will bring production of a critical transformer insulation material closer to the North American market.
Electricity demand in Canada is growing as new industrial projects, AI and data centres, expanding communities, and electrification place greater demands on the power system. Supporting that growth will require not only new generation and transmission infrastructure, but also the domestic industrial capacity and resilient supply chains needed to build it. Transformers are a critical part of that infrastructure, yet manufacturers continue to face global supply constraints, including limited availability of the specialized insulation materials required for transformer 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 & Components, Business Unit Transformers at 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."
Transformer insulation materials are vital to transformer performance and reliability. Pressboard insulation enables compact, safe, and cost-effective transformer designs while providing critical electrical insulation and supporting the cooling process within transformers. The longevity and performance of transformers depend heavily on the quality and consistency of these materials.
"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 will further strengthen Hitachi Energy's global manufacturing network, complementing existing insulation operations globally and creating a more robust supply ecosystem for transformer manufacturers worldwide.
"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," said the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions. "Our government's investment in Hitachi is delivering real results through the National Electricity Strategy and is securing Canada's energy future."
"This project demonstrates how we can create high value uses for Canadian forest products like pulp in the energy infrastructure that powers our economy," said the Honourable Tim Hodgson, Minister of Energy and Natural Resources. "By supporting advanced 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 vision set out in the Forest Sector Strategy for Canada and the National Electricity Strategy."
"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," said the Honourable Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade. "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 London facility is part of Hitachi Energy's commitment to invest more than $2 billion USD to bolster the North American supply chain through 2027. Recent Canadian investments include the acquisition of London-based Canduct, a manufacturer of transformer insulation kits and components, and a $270-million Canadian expansion to nearly triple large power transformer production capacity in Varennes, Quebec.
About Hitachi Energy
Hitachi Energy is a global leader in electrification, powering the electricity era to meet the energy demands of today, and the next 25 years. As the energy arm of Hitachi Group, over three billion people depend on our pioneering, mission-critical technologies to power their daily lives. With over a century of innovation, we are addressing the most urgent energy challenge of our time: driving the evolution of the world's energy system to ensure abundant, secure, affordable, and sustainable power for today's generation and the next. With an unparalleled installed base in over 140 countries, we are the grid ecosystem partner across the utility, industry, data center, and transportation sectors. Headquartered in Switzerland, we employ over 56,000 people in 60 countries and generate revenues of around $20 billion USD.
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About Hitachi, Ltd.
Through its Social Innovation Business (SIB) that brings together IT, OT (Operational Technology) and products, Hitachi aims to be a global leader in continuously transforming social infrastructure through digital, contributing to a harmonized society where the environment, wellbeing, and economic growth are in balance.
Hitachi operates worldwide across four sectors – Digital Systems & Services, Energy, Mobility, and Connective Industries – as well as a Strategic SIB Business Unit focused on new growth areas. With Lumada at its core, Hitachi creates value by combining data, technology, and domain knowledge to solve customer and social challenges.
Revenues for FY2025 (ended March 31, 2026) totaled 10,586.7 billion yen, with 606 consolidated subsidiaries and approximately 290,000 employees worldwide. Visit us at www.hitachi.com.
SOURCE Hitachi Energy
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