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View of Hanon Systems' Woodbridge plant. / Hanon Systems

Hanon Systems, a global automotive thermal management solutions company under the Hankook & Company Group, has secured support from the Canadian government for a large-scale electrification investment project underway in the country. The company is investing CAD 155 million to build an electric compressor manufacturing plant and R&D center in Vaughan, Ontario, and the Canadian government has agreed to provide CAD 10 million (about 10 billion won) in support for the project.

Hanon Systems announced on the 7th that Canada's Department of Innovation, Science and Economic Development (ISED) has approved CAD 10 million in government support.

The support comes as part of the Canadian government's Strategic Response Fund, aimed at advancing its eco-friendly vehicle strategy and strengthening supply chains.

Hanon Systems is investing CAD 155 million to build an electric compressor plant and R&D center in Canada, and has now secured CAD 10 million in government backing for the project. The total project scale, including government-supported indirect costs, comes to CAD 198.75 million.

Hanon Systems plans to develop the site into Canada's first electric compressor production base. Once completed, the facility will center on producing vapor-injected electric compressors used in electric vehicles (EVs) and hybrid vehicles (HEVs), aiming to build production capacity of up to 1.5 million units per year by 2034.

Industry observers expect the investment to further strengthen Hanon Systems' thermal management component supply capabilities in North America, as growth in the region's EV market drives automakers to demand stronger local supply chains.

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

Canadian Minister of Industry Mélanie Joly said, "Hanon Systems' new facility will be a key hub driving innovation in electrification component manufacturing in Canada," adding, "We expect it to play an important role in strengthening Canada's competitiveness within the global zero-emission vehicle (ZEV) ecosystem."

Vice Chairman and CEO Lee Su-il said, "With this support from the Canadian government, we've been able to significantly strengthen our electric compressor supply capabilities in the North American market," adding, "Backed by our next-generation thermal management technology for eco-friendly vehicles, we will continue to deliver differentiated value to our global automaker customers."

                                                                                                           Kim Jeong-kyu