Hanon Systems a Hankook Company

SEOUL, South Korea, August 7, 2026– Hanon Systems, a leading global provider of automotive thermal management solutions and a member of Hankook & Company Group, announced that it has secured CAD 10 million in support from the Canadian government. The funding will support the company's newly established e-Compressor plant and R&D center in Vaughan, Ontario—the first facility of its kind in Canada.

Innovation, Science and Economic Development Canada (ISED) announced a CAD 10 million (approx. KRW 10 billion) grant to Hanon Systems EFP Canada Ltd. to accelerate Canada’s automotive electrification transition and strengthen local supply chains.

The total scope of this project stands at CAD 198.75 million. This includes Hanon Systems’ direct investment of CAD 155 million for plant construction and R&D facility development, alongside eligible indirect project costs supported by the Canadian federal government. Upon completion, Hanon Systems will expand its North American production capacity, focusing on vapor-injected e-Compressors for electric vehicles (EVs) and hybrid electric vehicles (HEVs), aiming to reach an annual output of up to 1.5 million units by 2034.

This support was granted through the Canadian government's green automotive initiatives and the Strategic Response Fund. Through this project, the Canadian government expects to foster technological innovation in local automotive component manufacturing and create high-quality jobs in the Vaughan, Ontario area.

"Hanon Systems' new facility will serve as a key hub driving innovation in Canadian zero-emission component manufacturing while creating good local jobs," said Mélanie Joly, Minister of Industry, Innovation, Science and Economic Development Canada. "This marks an important milestone in positioning Canada as a leader in the global zero-emission vehicle (ZEV) ecosystem."  

Soo Il Lee, Vice Chairman and Chief Executive Officer of Hanon Systems, stated, "With support from the Canadian government, we are positioned to significantly enhance our supply capabilities for e-Compressors in the North American market," He added, "Driven by our next-generation thermal management technologies, we will continue to deliver differentiated value to our global automotive customers."

Established in 1986, Hanon Systems currently operates 4 locations in Canada—including 2 manufacturing facilities in Belleville, 1 plant in Concord, and the new e-Compressor facility and R&D center in Vaughan—employing approximately 900 people across the country.

[Photo] Exterior view of the Hanon Systems Woodbridge plant in Canada