Hitachi Energy Plans $479M Pressboard Plant in London, Ont.

Hitachi Energy Plans $479M Pressboard Plant in London, Ont.

Hitachi Energy will build a $479 million transformer insulation plant in London, Ont., with $50 million coming from federal and Ontario governments. The Canadian Press reported the plan via Daily Commercial News.

Market Impact

The 21,000-square-metre facility is slated for completion by the end of 2028. It would be the first plant in Canada to produce pressboard, a paper-pulp material used to keep transformers cool, and Hitachi’s first pressboard facility in the Americas. It is expected to create 100 permanent skilled jobs.

Hitachi is covering the bulk of the cost. The public money breaks down as follows:

• $20 million from the federal strategic response fund
• $10 million from Natural Resources Canada
• Up to $20 million from the Invest Ontario Fund

Bruno Melles, CEO of Hitachi’s transformers business unit, said transformer manufacturing is moving “at a very high speed, but not all the industrial parts are going at the same speed.” He said Hitachi wants to be part of supply chain resilience so “the market is not going to have any shortage.” Carla Vincente, managing director of Hitachi Energy’s Canadian division, said demand is growing at an unprecedented pace. Drivers cited include renewable electricity, industrial development and AI data centres. The plant is a component supplier, not a transformer assembly line, so any easing of delivery delays on substation and grid jobs would come indirectly.

The project fits Ottawa’s May electricity strategy, which aims to double the country’s grid by 2050. Several power and transmission projects have been sent to the major projects office for streamlined review.

What It Means for Subcontractors

• Procurement is not public yet. The source does not name a general contractor, construction manager, or any trade packages, and it gives no groundbreaking date. Civil, structural, mechanical and electrical work is the typical scope for a plant of this size (our inference, not stated in the source).
• The 2028 deadline sets the pace. A completion target of end of 2028 means site work and early packages would need to be awarded well before then (our inference). Civil and structural firms in the London area should get on bid lists now.
• Pressboard is process equipment, so expect mechanical and E&I demand. Source does not say what equipment is involved. Pipefitters, millwrights and electrical and instrumentation contractors should look for specialty process installation scope once an EPC or GC is named.
• Watch the public pre-bid lists. DCN publishes monthly pre-bid industrial project rankings for Ontario. The October edition ran Oct. 6, and a project of this value could appear in a later edition (our inference).
• Plan for the permanent workforce. The 100 skilled jobs will create ongoing maintenance and service demand after startup. Source does not say when hiring begins.
• Grid demand extends beyond this plant. Vincente tied the plant to electrification demand. Substation and transmission contractors should note that the supply-side investment points to sustained project volume, though the source gives no project list.