Hanon Systems Accelerates North American Electrification Push with $10 Million Support from Canadian Government

New Electric Compressor Plant Established in Vaughan, Ontario
Total Investment Reaches CAD 198.75 Million
Annual Production Capacity of 1.5 Million Units Targeted by 2034

Hanon Systems, the global automotive thermal energy management solutions company under The Korea & Company Group, has secured CAD 10 million in government support from Canada. This support targets the country’s first electric compressor manufacturing plant and research and development center, established in Vaughan, Ontario.

The Canadian Ministry of Innovation, Science and Economic Development (ISED) announced that it will provide CAD 10 million (approximately KRW 10 billion) in government support to Hanon Systems EFP Canada Ltd, the local subsidiary. This funding aims to accelerate the transition to electrification and strengthen the supply chain within Canada’s automotive industry.

Hanon Systems Woodbridge Plant Exterior. Korea & Company Group

The total scale of this project reaches CAD 198.75 million (approximately KRW 198.7 billion). This includes Hanon Systems’ direct investment of CAD 155 million (approximately KRW 155 billion) for the construction of the plant and research center, as well as project-related indirect costs that are eligible for federal government funding.

Upon completion, Hanon Systems will expand its North American production capabilities, centering on vapor-injected electric compressors for electric vehicles (EV) and hybrid electric vehicles (HEV). By 2034, the company plans to secure annual production capacity of up to 1.5 million electric compressors.

This government support is part of Canada’s green vehicle strategy and Strategic Response Fund. Through this project, the Canadian government aims to promote technological innovation in local auto parts manufacturing and expects the initiative to create high-quality jobs in the Vaughan, Ontario area.

Melanie Joly, Canada’s Minister of Industry, stated, "Hanon Systems’ new facility will serve as a key hub, leading innovation in Canadian electrified components manufacturing and creating quality jobs locally. We anticipate that this will be an important turning point for Canada to emerge as a leader in the global zero-emissions vehicle (ZEV) ecosystem."

Meanwhile, Hanon Systems, founded in 1986, currently operates two plants in Belleville, one plant in Concord, and the electric compressor manufacturing plant and R&D center in Vaughan, totaling four sites in Canada. Approximately 900 employees work across these locations.

Sooil Lee, Vice Chairman and CEO of Hanon Systems, said, "With the support from the Canadian government, we are now able to significantly strengthen our supply capability for electric compressors in the North American market. Based on next-generation thermal management technologies for eco-friendly vehicles, we will continue to deliver differentiated value to our global automaker clients."

This content was produced with the assistance of AI translation services.