Panasonic invests €320M, reopens heat pump factory in Czech Republic

Panasonic has marked a major milestone in the European production and distribution of its heat pump solutions with the reopening of its fully upgraded and expanded giga factory in Pilsen, Czech Republic. Panasonic has invested EUR 320 million into the expansion and refurbishment of the facility in Pilsen, increasing the factory’s production capacity by 250% to a total of 140,000 m². 

Following Panasonic’s nine-figure investment, the new production complex will be capable of producing up to 1.4 million indoor and outdoor heat pump units per year from 2030 onwards, for supply throughout Europe, the company said in a media release.

This large expansion project transfers production and R&D from South-East Asia to Europe as Panasonic increases capacity of heat pumps being produced locally.

“The opening of this state-of-the-art heat pump production facility strengthens the competitiveness of Czech industry, brings new skilled jobs, and confirms that the Czech Republic offers attractive conditions for technologically demanding and innovative projects,” said Prime Minister of the Czech Republic Petr Fiala.

“We’re seeing a marked uptick in interest in heat pumps in the European market, and we are anticipating this to be reflected in demand in the next few years,” said Toshikatsu Fukunaga, CEO, Panasonic HVAC Europe. “Our investment into the Pilsen factory demonstrates both our confidence in the growth of the market and our ability to anticipate and meet future demand.”

The new production complex will produce external and internal heat pump units for residential and commercial applications for supply throughout Europe. In addition, in cooperation with a local university, a state-of-the-art R&D center focused on future heat pump developments has also been established in Pilsen at the factory, the media release said.  

The Pilsen facility is also investing significantly in robotics, automation and AI technology, as well as synergising with other global Panasonic factories in these areas. This will enable it to reach peak production capacity, drive efficiency and support the workforce. The factory currently has 80 robots deployed on site, and the factory layout has been optimised for the future deployment of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) for material supply and finished product transport. In future, the facility plans to achieve 100% automation in component manufacturing.

“The Czech Republic is geographically located in the heart of Europe, with accessibility within 24 hours to all European destinations. As the first Japanese company to enter the Czech Republic, Panasonic began operations in Pilsen in 1997,” said Tetsumasa Mizuta, Managing Director, Panasonic HVAC CZ. “A pioneer of investments in the country, Panasonic has strong relationships and networks — including government and supply chain — in the Czech Republic, which we plan to leverage as we grow our team in Pilsen.”