Hanon Systems invests $155 million to build Ontario’s first-of-its-kind EV parts facility

Invest Ontario supports company’s latest expansion, creating new manufacturing capacity of key EV component in North America

WOODBRIDGE, Ontario, October 28, 2024 – Invest Ontario is supporting a $155 million investment by Hanon Systems, a global supplier of automotive thermal and energy management solutions, for the construction of a new facility in Woodbridge, Ontario to manufacture cutting-edge e-compressors for electric vehicles (EVs).

The new facility will be North America’s first high displacement e-compressor plant, allowing world-class automakers in both Canada and the United States to meet their growing demand for critical high quality EV components from Ontario’s rapidly expanding EV supply chain.

Headquartered in South Korea, Hanon Systems is the one of the world’s largest automotive thermal and energy management solutions companies. This investment is part of a firm-wide strategy to expand the company’s global e-compressor manufacturing capabilities.

We are pleased to expand our manufacturing presence to increase proximity to vehicle manufacturers and better meet customer demand. This expansion also demonstrates our commitment to growth and proves customer confidence in our ability to deliver electric compressors to the market.

Nurdal Kücükkaya

President and co-CEO of Hanon Systems

We investigated several locations for the new plant. Our partnership with the Government of Ontario and Invest Ontario has been a significant element in our decision. We are proud to foster local community development and the growth of its economy.

Subu Nagasubramony

President and co-CEO of Hanon Systems

E-compressors (or electric compressors) are specially designed for EVs due to their lack of belt-driven engines. These components are vital to vehicle performance and safety as they form a critical part of the thermal management system. Hanon Systems’ heat pump system, equipped with these e-compressors, enhances thermal management in EVs, improving energy efficiency and driving range.

Over the last four years, Ontario has attracted $45 billion in auto and EV‐related investments from global companies with the help of Invest Ontario. Boasting an end-to-end auto supply chain, a skilled workforce, a wealth of critical minerals, and a thriving tech ecosystem, Ontario has everything needed to build the cars of the future.

Our province has all of the elements necessary to build the electric vehicles of the future, including leading global parts manufacturers like Hanon Systems who are continuing to choose Ontario to expand and grow their operations. Hanon Systems’ investment in Woodbridge will create hundreds of local jobs for our world-class auto workers and strengthen our reputation as a North American leader in automotive manufacturing.

Hon. Vic Fedeli

Minister of Economic Development, Job Creation and Trade

Ontario is home to Hanon Systems’ first offshore manufacturing site, which commenced operations in 1989. It has since grown into a solid presence with over 970 employees across the company’s facilities in Belleville and Concord, supplying world-class automakers across North America. This investment is expected to create nearly 300 new skilled jobs by the end of 2026.

Hanon Systems’ latest expansion, which adds to their decades-long success here, once again demonstrates why Ontario is the place for auto companies to grow and transition to an electric future. At Invest Ontario, we remain focused on supporting investors along their journey with expertise and services they need to ensure their project’s success.

Michael Fedchyshyn

Interim CEO of Invest Ontario

Subject to reaching a definitive agreement, the Invest Ontario Fund will support the investment with a $10 million grant, reflecting its strategic importance in bolstering Ontario’s global competitiveness in the EV sector.

For more information about Invest Ontario, please visit www.investontario.ca.