New production factory, R&D center to open in Vaughan, Ontario

155 billion won investment to build electric compressor facility

Hanon Systems' Woodbridge factory. [Hanon Systems]
Hanon Systems' Woodbridge factory. [Hanon Systems]

Hanon Systems has secured 10 billion won ($7.02 million) in support from the Canadian government for the country's first electric compressor production factory and research and development center, as the company accelerates its push into the North American market.

Canada's Ministry of Innovation, Science and Economic Development announced Friday it would provide Hanon Systems' Canadian subsidiary with 10 million Canadian dollars, equivalent to about 10 billion won, to support the electrification of Canada's automotive industry and strengthen its supply chain.

The total project value reaches 198.75 million Canadian dollars, or about 198.75 billion won. That figure includes Hanon Systems' direct investment of 155 million Canadian dollars for the factory and R&D center construction, on top of indirect project costs eligible for federal funding.

Once complete, the facility will expand Hanon Systems' North American production capacity, focusing on vapor-injection electric compressors for electric vehicles and hybrid vehicles. The company plans to reach an annual production capacity of up to 1.5 million electric compressors by 2034.

The government support is part of Canada's green automotive strategy and Strategic Response Fund. Ottawa said it expects the project to drive technological innovation in the local automotive parts manufacturing sector while creating quality jobs in Vaughan, Ontario.

Canadian Industry Minister Mélanie Joly said the new facility would serve as a key hub for advancing electric component manufacturing in Canada and generating quality local jobs. "We expect this to mark an important turning point as Canada rises to become a leader in the global zero-emission vehicle ecosystem," she said.

Founded in 1986, Hanon Systems currently operates four sites in Canada — two plants in Belleville, one in Concord, and the new electric compressor factory and R&D center in Vaughan — employing about 900 people in total.

Lee Su-il, vice chairman and chief executive of Hanon Systems, said the Canadian government's support would significantly strengthen the company's electric compressor supply capacity in North America. "We will continue to deliver differentiated value to global automaker customers based on our next-generation thermal management technology for eco-friendly vehicles," he said.

Meanwhile, Hanon Systems posted consolidated sales of 2.88 trillion won in the second quarter, up 0.6 percent from the same period last year, as cost reductions and operational efficiency gains lifted operating profit 61.2 percent year-on-year to 103.7 billion won.


eyre@heraldcorp.com