Hanon Systems' manufacturing plant in Woodbrigde, Canada (Hanon Systems)

Hanon Systems, a Korean automotive thermal management supplier, announced plans to build a new manufacturing plant for electric compressors in Ontario, Canada, on Tuesday to cope with growing demand from global automakers.

The new plant will mark the company’s first North American facility to produce electric scroll compressors, which are essential components for thermal management in hybrid and battery electric vehicles. Hanon Systems will invest $111 million in the new plant to produce up to 900,000 electric compressors per year.

“We are pleased to expand our manufacturing presence to increase proximity to vehicle manufacturers and better meet customer demand,” said Nurdal Kucukkaya, 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.”

The new Canadian foothold will be the company’s fifth electric compressor manufacturing plant along with the other four factories in Korea’s Pyeongtaek, China’s Dalian and Changchun and Portugal’s Palmela.

According to Hanon Systems, the Canadian plant is expected to begin production in the first half of next year.

“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 Vic Fedeli, Ontario’s minister of economic development, job creation and trade.

“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.”