Ontario Construction News staff writer
Hitachi Energy is set to invest $479 million in a new manufacturing plant for transformer insulation located in London, Ont. This marks the first time production of this essential component for electrical transformers will take place in Canada.
The facility will cover 21,000 square meters and is expected to be finished by 2028, creating over 100 permanent skilled jobs. It will focus on producing electrical insulation pressboard and laminates used in making and operating transformers.
This initiative will launch Canada’s first pressboard production line and be Hitachi Energy’s first such operation in the Americas, allowing North American transformer manufacturers to have better access to specialized insulation materials amid supply challenges.
The federal government is contributing $20 million through the Strategic Response Fund, while the Ontario government is offering up to $20 million via the Invest Ontario Fund. Additionally, Natural Resources Canada is providing another $10 million to Hitachi Energy Canada Inc.
With rising electricity demand driven by industrial developments, artificial intelligence advancements, expanding communities, and increased electrification, transformers play a vital role in power transmission and distribution. However, manufacturers have been facing global supply issues that hinder 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 and components in Hitachi Energy’s transformers business unit.
“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,” he said.
Pressboard insulation offers electrical insulation properties as well as aiding cooling within transformers. Its quality and consistency are essential for ensuring transformer performance, reliability, and longevity.
“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 of 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,” she added.
Industry Minister Mélanie Joly stated that this project would bolster economic growth while enhancing employment opportunities within Canada’s electricity supply chain.
“Canada is strengthening its electricity system to build a more connected, reliable, and efficient grid. By investing in critical infrastructure needed for our future power needs we’re supporting economic growth while creating good-paying jobs that enhance Canada’s economic security,” Joly remarked.
Energy and Natural Resources Minister Tim Hodgson mentioned that this facility would also find new applications for Canadian forest products like pulp within energy infrastructure manufacturing.
The London initiative fits into Hitachi Energy’s plan to invest over US$2 billion into improving North America’s supply chain by 2027.
The company has recently made other investments across Canada including acquiring London-based Canduct which manufactures transformer insulation kits as well as expanding its large power transformer operations with a $270-million project aimed at significantly boosting production capacity at its Varennes location in Quebec.
Ontario Economic Development Minister Vic Fedeli highlighted how this project would create high-value employment opportunities while supporting advanced manufacturing within the province. Top of Form Bottom of Form
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