Hitachi Energy has announced a C$479 million investment in a new manufacturing facility in London, Ontario, aiming to strengthen Canada’s domestic supply chain for critical electrical-grid components as electricity demand rises.

Announced on October 16, the project will establish Canada’s first pressboard manufacturing line for transformer insulation materials. These specialized materials are essential to the performance and reliability of power transformers used across electricity networks.

The planned 21,000-square-metre factory is expected to be completed by 2028 and create more than 100 permanent skilled jobs. The project is designed to bring production closer to North American transformer manufacturers and reduce reliance on overseas supply chains.

The investment includes government support: Canada has committed C$20 million through its Strategic Response Fund, Ontario has announced up to C$20 million through the Invest Ontario Fund, and Natural Resources Canada is providing an additional C$10 million.

The project comes as utilities and industrial customers face increasing demand for electricity from data centres, manufacturing, electrification and expanding communities. Transformer components have become an important part of efforts to strengthen grid capacity and reliability.

For Ontario’s manufacturing sector, the investment represents a significant expansion in advanced electrical-component production. Its longer-term impact will depend on construction progress, hiring and the facility’s ability to meet demand from transformer manufacturers.