Hitachi Energy Canada invests $479 million in Ontario transformer insulation facility

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Hitachi Energy Ontario facility

Highlights

Hitachi Energy Canada is investing $479 million in a 21,000-square-meter Transformer Insulation Centre in London, Ontario, with Ontario contributing up to $20 million.
The facility, scheduled for completion by 2028, will become the world’s largest transformer insulation plant and directly address a North American supply chain gap.
The project supports Ontario’s broader energy expansion and industrial strategy amid global instability, U.S. tariffs, and aims to localize manufacturing and reinforce advanced manufacturing employment.

London project adds domestic transformer capacity

As announced by the Ontario Government, Hitachi Energy Canada is establishing a 21,000-square-meter Transformer Insulation Centre in London’s Huron Industrial Park, with Ontario providing up to $20 million through the Invest Ontario Fund. The facility is expected to be completed by 2028 and is slated to become the largest of its kind globally.

The investment is intended to address a key material gap in North America’s transformer supply chain by producing pressboard insulation in Canada rather than relying on foreign imports. Provincial officials say the project supports Ontario’s broader effort to expand advanced manufacturing tied to electricity infrastructure and grid modernization.

Hitachi Energy Canada said the London site strengthens a critical domestic capability as utilities upgrade systems to meet rising electricity demand. The company also said the investment reflects a long-term commitment to Canadian industry, talent and innovation in an increasingly electrified economy.

Ontario ties investment to wider energy buildout

Provincial ministers are linking the project to Ontario’s larger energy expansion strategy, arguing that long-term planning is helping attract manufacturing tied to generation, transmission and grid equipment. The province says its Integrated Energy Plan and ongoing buildout are creating clearer conditions for companies to commit capital to long-duration industrial projects.

The London announcement builds on Hitachi Energy’s broader footprint in Ontario, including its acquisition of London-based Canduct Group and a recent $30 million investment in transformer repair, service and training at its Stoney Creek facility. Officials say the latest project will help reinforce local supply chains while supporting employment and the province’s position in North America’s advanced manufacturing sector.

Ontario also says ongoing global economic instability and U.S. tariffs are increasing the importance of building more critical industrial capacity at home. The province is presenting the Hitachi Energy investment as part of a wider push to attract private capital into manufacturing, transmission infrastructure, energy storage and clean technology.

Our earlier coverage of China’s rare earth export licensing highlighted Beijing’s signal that shipments to Europe would keep moving even if the temporary U.S.-China trade truce is not extended beyond January. We noted that the EU and China were using ongoing trade talks and a proposed “green channel” to reduce friction and protect access to critical inputs that key industries rely on.

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