The Government of Canada announces significant investment to strengthen Canada's electricity and forest products supply chains

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.

Quotes

"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

• Strategic Response Fund
• Investments in Forest Industry Transformation
• Hitachi Energy in Canada
• Canada's clean electricity future
• Draft Action Plan to Transform Canada's Forest Sector
• Canada to invest in cutting-edge technology to modernize Canadian forest sector

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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]