South Korean automotive parts supplier Hanon Systems has announced that it will spend more than $155 million to build a new factory in Woodbridge.

The 284,200-square-foot facility will become the first in North America to manufacture e-compressors, an essential component for electric vehicles. The Ontario government hopes that the move will allow greater access to EV components for vehicle manufacturers across Canada and the United States.

“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 Economic Development Minister Vic Fedeli. “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.”

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.

The new Woodbridge facility will have 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.

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.

“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.

The province’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.

Ontario is the only place in North America where five major automakers build their vehicles, including Honda, Toyota, Ford, General Motors, and Stellantis.