Panasonic Corporation has announced that it will invest 20 billion yen in its Czech Plant by 2026 to strengthen the production of air-to-water heat pumps, which have been experiencing growing demand in Europe.
Demand for the eco-friendly heating systems is growing in the European market.
Panasonic started the production of A2W indoor units at its plant in Plzen, Czech Republic in 2018. Since then, it has been quickly responding to the European market needs while saving further emissions by local production for local markets in Europe.
Currently, a shift in energy sources reducing gas and other fossil fuels while enabling for more electrification is rapidly taking place in Europe, the company said.
Due to the rising environmental awareness and the recent circumstances surrounding energy supply, there had been a pressing need for Panasonic to establish a production capacity to meet such growing demand.
The investment will enable it to start the production of outdoor units in the next fiscal year, in addition to indoor units already being manufactured. The company aims to increase its annual production capacity to 500,000 units by the fiscal year ending in March 2026, a statement added.