A major investment is putting London, Ontario, at the centre of North America’s growing demand for electricity infrastructure. Hitachi Energy announced on October 16, 2026, that it will invest C$479 million to build a manufacturing facility producing specialized insulation materials essential for electrical transformers.
The project comes with up to C$50 million in combined support from the federal and Ontario governments and is expected to create more than 100 permanent skilled jobs. The factory, scheduled for completion in 2028, will introduce a manufacturing capability Canada currently lacks.
With electricity demand rising because of artificial intelligence, data centres, industrial expansion and electrification, the investment offers more than a local employment boost. It could help Canadian and American manufacturers overcome a critical supply shortage while strengthening Canada’s position in the North American energy industry.
A $479 Million Factory Is Coming to London, Ontario
Hitachi Energy confirmed on October 16 that London, Ontario, will be home to a new C$479 million transformer insulation manufacturing facility. The company, a wholly owned subsidiary of Japan’s Hitachi Ltd., plans to construct a state-of-the-art factory measuring approximately 21,000 square metres, equivalent to roughly 226,000 square feet. The facility is expected to be completed by 2028 and will produce specialized electrical insulation pressboard and laminates used in the construction and operation of power transformers.
The investment represents a significant addition to Canada’s advanced manufacturing sector. Instead of assembling complete transformers, the London operation will manufacture materials that transformer producers depend on to build reliable equipment. Those components will serve the broader North American supply chain, including manufacturers supplying electric utilities, industrial facilities and other major infrastructure projects. Hitachi Energy says the investment will bring production closer to customers and reduce dependence on distant sources for specialized materials. The announcement also establishes London as an important location within the company’s expanding international manufacturing network.
Ottawa and Ontario Are Providing Up to $50 Million in Support
The Canadian and Ontario governments are supporting the project through three separate funding commitments. Ottawa announced C$20 million through the federal Strategic Response Fund, while Natural Resources Canada provided an additional C$10 million to Hitachi Energy Canada. Ontario committed up to C$20 million through the Invest Ontario Fund. Together, the announced support amounts to a maximum of C$50 million, although the provincial contribution is explicitly an upper limit rather than confirmation that the entire amount has already been paid.
The Strategic Response Fund supports major industrial investments intended to strengthen Canadian manufacturing, create employment and address supply-chain weaknesses. Provincial participation reflects Ontario’s efforts to attract advanced manufacturing projects that can support long-term economic growth. Federal Industry Minister Mélanie Joly welcomed the investment as an opportunity to strengthen Canada’s electricity infrastructure and economic security. The public commitments should not automatically be added to Hitachi’s C$479 million announcement to produce a larger project total, because the company has not provided a detailed accounting showing how the figures overlap. The funding announcement establishes government backing, not the final amount disbursed.
The Factory Will Produce Materials Most Canadians Never See
The products coming out of the new London factory may be unfamiliar, but they perform an essential function inside the equipment that delivers electricity. Electrical transformers adjust voltage so power can move efficiently over long distances and ultimately reach homes, factories and businesses at usable levels. Their internal components must operate under demanding electrical and thermal conditions. Specialized insulation prevents unwanted electrical contact, separates energized parts and supports safe operation.
Hitachi Energy’s new factory will manufacture electrical insulation pressboard and laminates. Pressboard is an engineered, cellulose-based material used to create insulating barriers, spacers and structural components inside transformers. It provides electrical protection while helping maintain the spacing and cooling channels needed for reliable operation. The material is considerably more specialized than ordinary cardboard, requiring consistent properties and careful manufacturing controls. Although it is rarely visible to electricity customers, its quality can affect transformer performance and longevity. Producing these materials domestically could give Canadian manufacturers greater access to an important input without relying exclusively on overseas production.
Canada Will Get Its First Domestic Pressboard Manufacturing Line
One of the project’s most significant features is that it will establish Canada’s first manufacturing line for this specialized transformer pressboard. Hitachi Energy also says it will be the company’s first such production line anywhere in the Americas. The announcement addresses a gap in Canada’s industrial supply chain: Canadian companies can manufacture transformers and insulation components, but the specific pressboard production capability being introduced in London has not previously been available domestically.
That distinction matters because manufacturing a complete transformer requires reliable access to numerous materials, often sourced from specialized suppliers operating in different countries. Even when assembly capacity exists, a shortage of a relatively small component can delay the finished equipment. Bringing pressboard manufacturing to Canada could reduce some transportation dependencies and improve coordination between material producers and transformer manufacturers. It will not eliminate every supply-chain problem, but it adds a production capability that manufacturers throughout North America can potentially use. For Hitachi Energy, the investment is designed to strengthen the regional network rather than replace its existing international operations.
More Than 100 Permanent Skilled Jobs Are Expected
The London facility is expected to create more than 100 permanent skilled positions once established. Those jobs would add to southwestern Ontario’s manufacturing workforce at a time when companies increasingly require specialized technical and production capabilities. Advanced materials manufacturing can involve equipment operation, quality assurance, process management and technical maintenance, although Hitachi has not yet published a detailed breakdown of the positions it intends to fill.
The announcement is particularly meaningful because Hitachi Energy already has a connection to London’s manufacturing community. In July 2026, the company completed its acquisition of Canduct Group, a London-headquartered manufacturer of transformer insulation kits and components. Canduct employed more than 300 people across its operations at the time of the acquisition. The additional factory will build on that existing regional expertise, although its anticipated new jobs should not be confused with Canduct’s established workforce. For workers considering a long-term career in manufacturing, a permanent skilled position can provide greater employment stability. Hiring schedules, wage details and specific occupational requirements have not yet been announced.
Ontario’s Electricity Demand Is Forecast to Grow 65% by 2050
The investment arrives as Ontario prepares for a substantial increase in electricity consumption. The province’s Independent Electricity System Operator forecasts that electricity demand will rise approximately 65% by 2050 under its 2026 reference scenario. Industrial expansion, population growth, electric vehicles and data centres are among the major drivers. The same outlook estimates that data centres could account for 8.6% of Ontario’s total electricity demand by 2050, illustrating how digital infrastructure is becoming an increasingly significant electricity customer.
Canada faces similar pressures nationally. The federal government’s National Electricity Strategy establishes an ambition to double the country’s electricity supply by 2050. Achieving that objective will require investments in generation, transmission lines, substations and other supporting equipment. Transformers are indispensable to connecting new power generation with the places that consume electricity. However, increasing electricity production alone will not guarantee that power can be delivered efficiently. The supporting infrastructure must also expand. Hitachi’s investment addresses one part of that challenge by increasing the availability of specialized materials required to manufacture essential grid equipment.
Transformer Shortages Are Slowing Electricity Projects Worldwide
Electricity utilities around the world have struggled with lengthy equipment delivery times. In February 2025, the International Energy Agency reported that procurement periods for large power transformers had stretched to as much as four years, approximately double earlier levels. The agency also found that inflation-adjusted transformer prices had increased by roughly 75% since 2019. These constraints have complicated efforts to expand transmission infrastructure and replace aging equipment.
The situation is particularly important for North America. The U.S. Department of Energy has identified transformer supply chains as a major vulnerability affecting electricity infrastructure. Manufacturers face limited capacity, specialized material shortages and highly customized equipment specifications. Some critical components can take years to procure, creating uncertainty for utilities planning new connections and equipment replacements. Hitachi Energy’s London factory is intended to address one important part of this bottleneck: the availability of insulation materials. Increasing regional production could help manufacturers respond more effectively to demand, although the factory alone cannot eliminate delays involving transformer cores, copper, skilled labour or other necessary components.
Hitachi Is Already Expanding Its Canadian and American Operations
The London investment forms part of a much larger expansion strategy. In September 2025, Hitachi Energy announced an additional C$270 million investment in its large power transformer manufacturing facility in Varennes, Quebec. That project builds on earlier investment and is expected to nearly triple annual production capacity while supporting more than 500 new jobs. The company has also invested in Canadian transformer servicing operations, including facilities in Stoney Creek and Cambridge, Ontario.
Expansion is taking place south of the border as well. In September 2026, Hitachi Energy announced a US$528 million transformer factory in Gallman, Mississippi, expected to create more than 700 jobs. The company also broke ground on a US$457 million project in South Boston, Virginia, with approximately 825 jobs anticipated. Hitachi says its wider North American supply-chain investment commitment exceeds US$2 billion through 2027. These developments show that the London project is not an isolated investment. It fits into a strategy of increasing regional manufacturing capacity across Canada and the United States to support growing electricity infrastructure needs.
The Project Could Create New Demand for Canadian Forest Products
An important part of the London investment involves a material Canada already produces in significant quantities: wood pulp. Transformer pressboard commonly uses processed cellulose fibres, making it a potential high-value application for forest-based materials. Federal Energy and Natural Resources Minister Tim Hodgson highlighted this connection in the announcement, describing the project as an opportunity to develop new markets for Canadian forest products while supporting advanced manufacturing.
That possibility carries significance for Canada’s forest sector, which has faced changing trade conditions and pressure to develop more specialized products. Higher-value industrial materials offer opportunities beyond conventional lumber and paper applications. However, the announcement did not identify specific pulp suppliers or confirm how much Canadian-produced material the new factory will purchase. Those details will determine whether forest producers directly benefit from the investment. The opportunity also extends to logistics providers, equipment suppliers and manufacturers that could eventually participate in the supply chain. Establishing the factory in Canada creates the potential for these commercial relationships, but their economic impact will depend on actual purchasing and production decisions.
The Next Two Years Will Determine the Factory’s Impact
Hitachi Energy expects its new London factory to be completed by 2028, giving the company a relatively short period to turn the announcement into an operating manufacturing facility. The planned investment, government backing and employment projections establish a clear direction, but important operational details remain outstanding. Hitachi has not publicly disclosed annual production capacity, specific customer contracts or a detailed hiring timetable for the facility.
The project’s long-term significance will become clearer as construction progresses and manufacturing begins. London workers will be watching for recruitment opportunities, while Canadian suppliers will be interested in purchasing arrangements and future contracts. Utilities and transformer manufacturers will want to see whether the additional insulation capacity helps shorten delivery schedules. Canadian governments will also have an interest in whether the investment produces the skilled employment and supply-chain benefits used to justify public support. The new facility cannot guarantee lower household electricity bills or resolve every infrastructure bottleneck. Nevertheless, bringing a previously unavailable manufacturing capability to Canada represents a meaningful step toward building the equipment needed for a more electricity-dependent North American economy.
