Japanese electronics giant Panasonic has reopened its newly expanded “giga factory” in Pilsen, Czech Republic, following a €320 million investment aimed at significantly scaling up production of heat pumps for the European market. The move marks one of the largest manufacturing investments in Europe’s heating and cooling sector in recent years.
The upgraded facility will serve as Panasonic’s primary European production and R&D hub for its air-to-water heat pump solutions, with an annual capacity projected to reach 1.4 million units by 2030.
The expansion forms part of Panasonic’s broader strategic shift, transferring heat pump production and R&D from Southeast Asia to Europe, in line with EU decarbonisation targets and rising demand for localized clean energy solutions.
"At Panasonic, we see Europe as particularly advanced when it comes to sustainability, and therefore the acceptance of sustainable energy solutions,” said Toshikatsu Fukunaga, CEO of 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 reopening comes at a pivotal moment for the European heat pump market. In 2024, the sector was valued at €12.2 billion, with forecasts expecting it to surpass €71 billion by 2034, according to Global Market Insights. As countries phase out gas boilers and pivot to electrified heating, companies like Panasonic are racing to meet growing residential and commercial demand.
The European Commission has called for the installation of 30 million new heat pumps by 2030.
“The heat pump sector is boosting Europe’s energy security, our economy and our path to decarbonisation… Today’s factory reopening is both a big step forward and a clear message that heat pumps will inevitably be at the heart of our future global energy system,” said Paul Kenny, Director General of the European Heat Pump Association.
“The factory in Pilsen is set to become Panasonic’s central hub for heat pump production and supply in Europe,” said Radek Vach, Business Planning Director, Panasonic HVAC CZ. “Bringing R&D and production together on the same site enables speed, flexibility, and cost efficiency, while reducing logistics-related emissions.”
“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 Czech Prime Minister Petr Fiala, who attended the ceremony.
The facility is located in what Panasonic refers to as the Czech Republic’s own “Silicon Valley,” a region known for its concentration of engineering talent and tech firms. Panasonic has been operating in the Czech Republic since 1997, and the expansion is expected to create a significant number of high-value jobs in manufacturing and research.
“Pilsen itself is in the Czech Republic’s own ‘Silicon Valley,’ with many high growth and innovative tech companies nearby… It has a highly qualified workforce, as well as strong opportunities for collaboration with local academic institutions,” added Radek Vach.
Globally, Panasonic has committed to achieving Net Zero in its own operations by 2030, and across its value chain by 2050. The Pilsen facility contributes directly to these goals, helping Panasonic not only scale production but also align with ESG priorities that are increasingly vital to both policymakers and institutional investors.
By shifting key operations to Europe, the company also hedges against supply chain disruptions, rising geopolitical tensions in Asia, and increasing scrutiny of embedded emissions in imported goods.
The move positions Panasonic as a front-runner in the European clean heating market, putting it in direct competition with local and regional players such as Vaillant, Viessmann, and Bosch Thermotechnology, all of whom are scaling their own heat pump capabilities in response to surging demand and policy incentives.
Would you like to write the first comment?
Login to post comments