Business · Transformer supply chain

Hitachi Energy Plans C$479M London Factory and More Than 100 Permanent Jobs

The proposed transformer-insulation plant would bring Canada its first pressboard production line. Completion is expected by 2028, but hiring dates, funding terms and an exact production start remain unsettled.

Aired Written 4 min read34 sourcesHeyDay News Desk · About usWatch report

Follow via RSS

Transcript · LOADING

Story trackerDay 2

1 report19 outlets34 sources1 video

The 226,000-square-foot factory planned for east London, Ontario, would not make transformers. It would make the insulation inside them—and introduce Canada’s first pressboard manufacturing line. That is the distinctive promise behind Hitachi Energy Canada’s C$479 million investment announcement: a new domestic source of a material needed in high-voltage electricity equipment. 1 3

Announced on October 16, 2026, the proposed Transformer Insulation Centre is expected to create more than 100 permanent skilled manufacturing and engineering jobs. Those are prospective operating positions, not a workforce already hired for the new plant. London has secured a substantial industrial commitment; turning it into an employer and a producing factory is the work still ahead. 3 4 1

Key facts

  1. C$479 millionAnnounced project investment 34
  2. More than 100Permanent skilled jobs expected 14
  3. Up to C$50 millionCombined announced public support 2734

The centre would occupy about 21,000 square metres in Huron Industrial Park in east London. Hitachi Energy Canada is the identified investor, rather than an unspecified company merely linked to Hitachi. Hitachi Energy is wholly owned by Hitachi, Ltd. 7 28 4 24

The precise C$479 million commitment sharpens the initial description of a nearly half-billion-dollar project. It does not establish how much has already been spent, or provide a construction-only cost breakdown. The distinction matters: the announced investment describes the scale of the proposed project, not a completed asset. 3 4

A material, not a whole transformer

Pressboard provides insulation inside high-voltage transformers. Making it in London would add a material-manufacturing operation to the North American transformer supply chain, rather than another plant assembling complete transformers. Equipment makers need the components and materials inside their products as well as the factories that put them together. 6 26

That gives the first-in-Canada designation genuine industrial significance, but not unlimited significance. The announcement does not establish how much pressboard Canada currently imports, where those imports originate, or how much this facility would replace. Nor does it quantify a reduction in transformer delivery times attributable to the London plant. A new domestic capability is a concrete advance; an end to supply shortages is not an established outcome. 2 26 31

Shop Metalworking Technology reports planned capacity of up to 20,000 tonnes of finished pressboard annually. That is a specification for what the proposed line could produce once operating—not material already manufactured, sold or committed to customers. 9

A separate figure in CTV News’s reporting describes more than 20,000 tons of wood fibre used to make pressboard. It cannot be substituted for the annual output specification: it concerns feedstock rather than finished product, uses “tons” rather than “tonnes,” and has no established annual basis. The relationship between the two quantities remains unexplained, so they cannot support a calculation of manufacturing yield. 1 9

The commercial destination of the output is also unresolved. The available project accounts do not identify contracted buyers, the share intended for Canada or export, or how production would be divided between Hitachi Energy’s own factories and other manufacturers. The supported claim is a new supply source, not a verified order book. 26 31

Public support needs a payment ledger

The public contribution is more precisely described as C$30 million in announced federal support and up to C$20 million from Ontario—a combined envelope of up to C$50 million. The provincial ceiling is important: it is not a guarantee that the full amount will be paid, and neither announcement establishes completed transfers. 27 34

The federal package comprises C$20 million from the Strategic Response Fund and C$10 million from the Investments in Forest Industry Transformation program, according to Pulp and Paper Canada. That funding connects the project’s electricity-infrastructure role with the forest-products material it would process. 27

What remains unestablished is the financial agreement behind those headline sums: amounts disbursed, payment schedules, whether support is repayable, and the investment or employment milestones attached to it. An enforceable job-maintenance period and any repayment obligation for missed targets have not been established either. Those gaps do not prove safeguards are absent. They mean the public cannot yet assess the package as money paid under known terms. 2 4 27 34

For workers, the employment forecast offers something specific: permanent skilled manufacturing and engineering positions, separate from the work of building the factory. But there is no established hiring timetable, wage-and-benefit package or construction-employment total. A projected job count is useful evidence of the intended operation; it is not yet an opening someone can apply for. 1 4

The gap between groundbreaking and production

Executives and ministers held a groundbreaking ceremony on October 16, documented in a Canadian Press photograph caption. That establishes the ceremonial milestone, not when sustained physical construction began. CBC reports that the Huron Industrial Park facility is expected to be completed by 2028. CTV’s initial account placed production nearly two years after the announcement. 25 28 1

Those accounts describe a broadly similar development horizon, but completion, commissioning and commercial production are different milestones. No exact production-start date has been established. A finished building still has to become a functioning manufacturing operation, with equipment brought into service and people employed to run it. 28 1

The project deserves to be judged on its actual proposition: a large investment in a material Canada has not previously manufactured on a pressboard line, with skilled permanent employment attached. The next evidence that matters is less theatrical than a groundbreaking—construction delivered, funding terms disclosed, hiring opened and finished insulation coming off the line. Until then, C$479 million measures the commitment, not the accomplishment.

As aired 13 lines
  1. Hitachi Energy Canada plans to invest 479 million Canadian dollars in a transformer-insulation factory. The project promises more than 100 permanent skilled jobs and Canada's first pressboard manufacturing line. When will that investment become a working factory, with people employed and material coming out?
  2. The company announced the project on October 16, 2026. Hitachi Energy is wholly owned by Hitachi. Its Canadian business is the investor behind the proposed Transformer Insulation Centre.
  3. The proposed factory would occupy 226,000 square feet in Huron Industrial Park, in east London, Ontario. That's about 21,000 square metres. The investment would bring a new material-making operation into the city's industrial base.
  4. The 479 million dollars is the announced project investment. The company hasn't provided a construction-only cost breakdown. The employment forecast covers permanent skilled manufacturing and engineering positions needed to operate the facility.
  5. Pressboard provides insulation inside high-voltage transformers. Hitachi Energy plans to manufacture that material in London. A first Canadian production line would add a domestic source of transformer insulation to the North American supply chain.
  6. That gives the project a specific role in electricity infrastructure. Transformer manufacturers need materials as well as assembly capacity. The London announcement doesn't put a number on how much this plant would shorten delivery times or replace imports.
  7. The federal government has announced 30 million Canadian dollars in support. Ontario's support is up to 20 million. Together, that's an announced envelope of up to 50 million dollars. The provincial ceiling means the full amount isn't guaranteed.
  8. The federal package includes 20 million dollars from the Strategic Response Fund. Another 10 million comes from the Investments in Forest Industry Transformation program. Governments haven't disclosed how much support has actually been paid, or the repayment and job-protection terms attached to it.
  9. The material figures describe different things. One gives more than 20,000 tons of wood fibre as an input. Another gives finished-pressboard capacity of up to 20,000 tonnes annually. The first figure has no stated annual basis, and the units differ.
  10. The relationship between those quantities hasn't been explained, so they can't be used to calculate manufacturing yield. The annual pressboard specification describes capacity the proposed line could have once operating.
  11. More than 100 permanent skilled jobs are expected at the factory. Those positions would give manufacturing workers and engineers a new local employer. They're prospective operating jobs, separate from the work involved in building the plant.
  12. Executives and ministers broke ground on October 16, 2026. The factory is expected to be completed by 2028. The early estimate put production nearly two years after the announcement. Building completion and bringing equipment into service are separate steps.
  13. London has a 2028 completion expectation for a plant that would introduce Canadian pressboard production. Delivering that capability still requires the factory to be built, equipped and staffed. The company hasn't announced an exact production-start date or when those permanent jobs will open.

Sources

34 sources19 outlets1 video1 wire copy

Source map

Follow the evidence behind this report. The map shows its connections; the links below open the sources cited in this article.

Source map loads as you read.

Explore the full newsroom map ↗

Revision log

  1. r1First published.