Expands Manufacturing in Canada
Meeting that demand starts long before electricity reaches homes and businesses. It starts with the manufacturers producing the transformer cores and electrical steel components that keep the grid moving.
That's why Worthington Steel invested approximately $85 million in a new 250,000-square-foot manufacturing facility in Burlington, Ontario. The expansion—part of the Company’s Tempel electrical steel lamination business—more than doubles Worthington Steel’s Canadian manufacturing footprint, increasing production capacity for transformer cores and precision electrical steel laminations while strengthening North America's electrical infrastructure supply chain.
Over the past decade, Worthington Steel’s operations in Burlington have grown from approximately 19 employees to more than 220, representing an over 1,000% labor increase. As customer demand accelerated, the existing facility reached its practical manufacturing capacity, making additional investment the logical next step.
"Our customers continue to look for partners that can grow alongside them," said Geoff Gilmore, president and CEO of Worthington Steel. "This investment reflects our commitment to meeting those needs while strengthening our ability to support the long-term growth we see across the electrical infrastructure market."
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The expansion was driven by customer demand and reports on expected energy usage over the last five years, not speculation. According to the U.S. Department of Energy, data center electricity consumption has tripled over the past decade and is expected to double again by 2028*. With this prediction, meeting the needs of a growing electrical grid in North America is paramount.
Worthington Steel has visibility into approximately 18 to 24 months of customer demand across portions of the business, and more than 60% of the new facility's capacity is already committed, reinforcing the need for additional manufacturing capacity.
For customers, the expansion means broader technical capabilities and a partner investing to meet demand. The facility also introduces amorphous transformer core manufacturing, giving customers access to technology designed to improve transformer efficiency by reducing energy losses as the electrical grid continues to evolve.
*Source: DOE Releases New Report Evaluating Increase in Electricity Demand from Data Centers
The investment also strengthens North American manufacturing. Nearly 100 new jobs are expected across manufacturing, engineering, maintenance, quality and business support, reinforcing Worthington Steel's long-term commitment to investing in people while supporting the communities where it operates.
“Today is an exciting milestone for Tempel and Worthington Steel,” said Chris Brown, vice president of transformer cores for Tempel Canada. “Our successes have always come from the people who walk through these doors every day. Their skill, dedication and commitment to excellence have made this growth possible. They are the reason our customers continue to place trust in us.”
The opening of this new facility reflects both the strength of the electrical infrastructure market, and the trust customers continue to place in Worthington Steel and Tempel.
To celebrate the occasion, customers, suppliers, employees and government partners gathered for a grand opening ceremony featuring facility tours, a ribbon-cutting and employee pride. More than the opening of a new building, the event reflected Worthington Steel's continued commitment to investing in the people, partnerships and capabilities that will help customers power North America's future.
Brown, pictured right.