Hanon Systems Company, a South Korean manufacturer of automotive thermal management systems, announced that it is building a new plant in Ontario to supply vehicle manufacturers based in North America. The company confirmed that the new facility in Woodbridge, Ontario, will produce thermal management systems for electrified vehicles – with operations scheduled to start in the first half of 2025.

The 26,400 sq m factory will be the company’s first in North America to produce electric scroll compressors, essential components for thermal management in hybrid and battery electric vehicles (BEVs). At full capacity the plant will be able to produce 900,000 electric compressors annually, employing 300 staff.

The new facility will be Hanon Systems’ fifth electric compressor manufacturing facility globally, following plants in Pyeongtaek (South Korea), Dalian and Changchun (China), and Portugal (Europe). The company already has manufacturing facilities in Ontario, in the city of Belleville, producing fluid transport products, HVAC modules and electronic coolant valves for the North American market.

The Woodbridge plant will work closely with the company’s Americas Innovation Center in Novi, in the US state of Michigan, and will benefit from its proximity to major automakers in the region.

Nurdal Kücükkaya, Hanon Systems’ president and co-CEO, said in a statement: “We are pleased to expand our manufacturing presence to increase our proximity to vehicle manufacturers and better meet customer demands. This expansion also demonstrates our commitment to growth and proves customer confidence in our ability to deliver electric compressors to the market.”

Subu Nagasubramony, also president and co-CEO, confirmed that the company had “investigated several locations for the new plant. Our partnership with the government of Ontario and investment development agency has been a significant element in our decision.” Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, added: “Our province has all the elements necessary to build the electric vehicles of the future. Leading global parts manufacturers like Hanon Systems continue to choose Ontario to expand and grow their operations. Hanon Systems’ investment in Woodbridge will create 300 new local jobs for our world-class auto workers and strengthen our reputation as a North American leader in automotive manufacturing.”

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