The Ontario government is welcoming an investment of over $155 million by Hanon Systems, a global automotive parts supplier, to build a new 284,200 square foot facility in Woodbridge. The new facility will manufacture e-compressors, an essential component for electric vehicles, creating 300 jobs and strengthening the province's growing end-to-end EV supply chain.
"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," said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. "Hanon System's 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."
Headquartered in South Korea, Hanon Systems is a leading global automotive thermal management supplier for electrified mobility. Ontario became home to Hanon Systems' first manufacturing site in 1989. The company now employs over 970 employees across their Belleville and Concord facilities, supplying automakers throughout North America.
The new Woodbridge facility will be North America's first e-compressor plant, with the capability to produce up to 900,000 e-compressors annually. In support of this investment, Ontario is providing Hanon Systems with $10 million through its Invest Ontario Fund.
"We are pleased to expand our manufacturing presence in Ontario to increase proximity to vehicle manufacturers and better meet customer demand," said Nurdal Kücükkaya, President and co-CEO of Hanon Systems. "This expansion also demonstrates our commitment to growth and proves customer confidence in our ability to deliver electric compressors to the market."
Over the last four years, Ontario has attracted $45 billion in new investments from global automakers, parts suppliers, manufacturers of EV batteries and battery materials. Ontario's leadership in the automotive industry, its competitive business costs, talented workforce, state-of-the-art research and development facilities, clean steel manufacturing and abundance of critical minerals make it one of the most competitive jurisdictions for international automotive manufacturers to invest and grow.
Quick Facts
- Ontario met with Hanon Systems during a successful trade mission to South Korea in 2022 to showcase the province's attractive business environment and world-class workforce.
- The Ontario government has provided an additional $100 million to the Invest Ontario Fund for a total of $600 million to attract more leading companies to the province and further support domestic businesses to create more good-paying jobs.
- Ontario's auto manufacturing sector supports over 120,000 direct jobs and hundreds of thousands of indirect jobs across the province. It includes over 700 parts firms, over 500 tool, die, and mold makers, and over 400 connected and autonomous vehicle companies. The province is the only place in North America where five major automakers build their vehicles, including Honda, Toyota, Ford, General Motors, and Stellantis.
Quotes
"This important investment by Hanon Systems will create hundreds of new jobs for people in Thornhill and the GTA, while further strengthening Ontario's end-to-end automotive supply chain. Every step forward in this sector is a step towards building a stronger, more competitive economy."
- Laura Smith
MPP for Thornhill
"This new investment from Hanon Systems demonstrates that companies from around the world are being attracted by the dynamic, growing, and talented population of Vaughan. With this investment, hundreds of good-paying jobs will be created in our community and Vaughan's critical role in Ontario's automotive supply chain will be cemented."
- Michael Tibollo
MPP for Vaughan Woodbridge
"Hanon Systems' investment is a major win for King-Vaughan and all of Ontario, reinforcing our leadership in electric vehicle innovation while creating three hundred good-paying jobs. As we tackle the challenges of rising energy demand with a clean and reliable grid, this expansion strengthens our local economy and supports Ontario's electrification and sustainability goals."
- Stephen Lecce
MPP for King Vaughan
"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
"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
