diff --git a/package.json b/package.json
index b0efdadbd18b..baa958496dd2 100644
--- a/package.json
+++ b/package.json
@@ -46,10 +46,10 @@
     "@angular/core": "2.2.3",
     "@angular/tsc-wrapped": "0.4.0",
     "angular2-template-loader": "^0.5.0",
+    "async": "^2.1.4",
     "autoprefixer": "^6.5.3",
     "chalk": "^1.1.3",
     "common-tags": "^1.3.1",
-    "compression-webpack-plugin": "^0.3.2",
     "configstore": "^2.0.0",
     "core-js": "^2.4.0",
     "css-loader": "^0.23.1",
diff --git a/packages/angular-cli/lib/webpack/compression-plugin.ts b/packages/angular-cli/lib/webpack/compression-plugin.ts
new file mode 100644
index 000000000000..32c627f17f58
--- /dev/null
+++ b/packages/angular-cli/lib/webpack/compression-plugin.ts
@@ -0,0 +1,112 @@
+/** Forked from https://github.com/webpack/compression-webpack-plugin. */
+const async = require('async');
+const url = require('url');
+
+const RawSource = require('webpack-sources/lib/RawSource');
+
+
+export interface CompressionPluginOptions {
+  algorithm?: string;
+  asset?: string;
+  level?: number;
+  flush?: boolean;
+  chunkSize?: number;
+  test?: RegExp | RegExp[];
+  windowBits?: number;
+  memLevel?: number;
+  strategy?: number;
+  dictionary?: any;
+  threshold?: number;
+  minRatio?: number;
+}
+
+
+export class CompressionPlugin {
+  private asset = '[path].gz[query]';
+  private algorithm: Function;
+  private compressionOptions: any = {};
+  private test: RegExp[];
+  private threshold: number = 0;
+  private minRatio: number = 0.8;
+
+  constructor(options: CompressionPluginOptions = {}) {
+    if (options.hasOwnProperty('asset')) {
+      this.asset = options.asset;
+    }
+
+    const algorithm = options.hasOwnProperty('algorithm') ? options.algorithm : 'gzip';
+
+    const zlib = require('zlib');
+
+    this.compressionOptions = {};
+    this.algorithm = zlib[algorithm];
+    if (!this.algorithm) {
+      throw new Error(`Algorithm not found in zlib: "${algorithm}".`);
+    }
+
+    this.compressionOptions = {
+      level: options.level || 9,
+      flush: options.flush,
+      chunkSize: options.chunkSize,
+      windowBits: options.windowBits,
+      memLevel: options.memLevel,
+      strategy: options.strategy,
+      dictionary: options.dictionary
+    };
+
+    if (options.hasOwnProperty('test')) {
+      if (Array.isArray(options.test)) {
+        this.test = options.test as RegExp[];
+      } else {
+        this.test = [options.test as RegExp];
+      }
+    }
+    if (options.hasOwnProperty('threshold')) {
+      this.threshold = options.threshold;
+    }
+    if (options.hasOwnProperty('minRatio')) {
+      this.minRatio = options.minRatio;
+    }
+  }
+
+  apply(compiler: any) {
+    compiler.plugin('this-compilation', (compilation: any) => {
+      compilation.plugin('optimize-assets', (assets: any, callback: Function) => {
+        async.forEach(Object.keys(assets), (file: string, callback: Function) => {
+          if (this.test.every((t) => !t.test(file))) {
+            return callback();
+          }
+
+          const asset = assets[file];
+          let content = asset.source();
+          if (!Buffer.isBuffer(content)) {
+            content = new Buffer(content, 'utf-8');
+          }
+
+          const originalSize = content.length;
+          if (originalSize < this.threshold) {
+            return callback();
+          }
+
+          this.algorithm(content, this.compressionOptions, (err: Error, result: string) => {
+            if (err) {
+              return callback(err);
+            }
+            if (result.length / originalSize > this.minRatio) {
+              return callback();
+            }
+
+            const parse = url.parse(file);
+            const newFile = this.asset
+              .replace(/\[file]/g, file)
+              .replace(/\[path]/g, parse.pathname)
+              .replace(/\[query]/g, parse.query || '');
+
+            assets[newFile] = new RawSource(result);
+            callback();
+          });
+        }, callback);
+      });
+    });
+  }
+}
diff --git a/packages/angular-cli/models/webpack-build-production.ts b/packages/angular-cli/models/webpack-build-production.ts
index ad54db5c65cc..caf2fc58f3e0 100644
--- a/packages/angular-cli/models/webpack-build-production.ts
+++ b/packages/angular-cli/models/webpack-build-production.ts
@@ -1,6 +1,7 @@
 import * as path from 'path';
+import {CompressionPlugin} from '../lib/webpack/compression-plugin';
+
 const WebpackMd5Hash = require('webpack-md5-hash');
-const CompressionPlugin = require('compression-webpack-plugin');
 import * as webpack from 'webpack';
 const ExtractTextPlugin = require('extract-text-webpack-plugin');
 
@@ -67,8 +68,7 @@ export const getWebpackProdConfigPartial = function(projectRoot: string,
           asset: '[path].gz[query]',
           algorithm: 'gzip',
           test: /\.js$|\.html$|\.css$/,
-          threshold: 10240,
-          minRatio: 0.8
+          threshold: 10240
       }),
       new webpack.LoaderOptionsPlugin({
         options: {
diff --git a/packages/angular-cli/package.json b/packages/angular-cli/package.json
index cbcac1da3c8f..bc0d76ec0e5d 100644
--- a/packages/angular-cli/package.json
+++ b/packages/angular-cli/package.json
@@ -32,9 +32,9 @@
     "@angular/core": "2.2.3",
     "@ngtools/webpack": "^1.0.0",
     "angular2-template-loader": "^0.5.0",
+    "async": "^2.1.4",
     "chalk": "^1.1.3",
     "common-tags": "^1.3.1",
-    "compression-webpack-plugin": "^0.3.2",
     "configstore": "^2.0.0",
     "core-js": "^2.4.0",
     "css-loader": "^0.23.1",