Hitachi Energy to build $479M transformer insulation factory in Ontario

Hitachi Energy has announced a $479-million plan to construct a transformer insulation factory in London, Ontario. The 21,000-square-metre facility will be the first in Canada to produce electrical-grade pressboard, a material made from paper pulp used to keep transformers cool.

The project aims to address supply chain challenges caused by rising electricity demand from data centers, green energy, and industrial development. Currently, Canada sources this material from Europe. The new plant is expected to produce up to 20,000 tonnes of pressboard and laminated insulation materials annually.

Funding for the project includes $50 million in combined support from the federal and provincial governments. This consists of $20 million through the federal Strategic Response Fund, $10 million via the Investments in Forest Industry Transformation program, and up to $20 million from the Invest Ontario Fund. The facility is scheduled for completion in 2028 and is expected to create more than 100 permanent skilled jobs.