Panasonic Reopens Expanded €320M Heat Pump Factory In Czechia

This marks one of the most significant manufacturing investments in Europe’s heating and cooling industry in recent years.

The upgraded facility will become Panasonic’s central European hub for the production and research and development of its air-to-water heat pump systems, with plans to reach an annual capacity of 1.4 million units by 2030.

This expansion is part of Panasonic’s strategic move to shift heat pump manufacturing and development from Southeast Asia to Europe aligning with the EU’s decarbonisation goals and the growing demand for locally produced 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 key moment for Europe’s heat pump market, which was worth €12.2 billion in 2024 and is expected to grow to over €71 billion by 2034, according to Global Market Insights.

As more countries move away from gas boilers and adopt electric heating, demand is rising quickly in both homes and businesses driving companies like Panasonic to expand fast to keep up.

The European Commission has set a target of installing 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 a region Panasonic calls the Czech Republic’s "Silicon Valley," known for its intense concentration of engineering talent and tech companies. Panasonic has been operating in the country since 1997 and the expansion is expected to create a substantial number of high-value jobs in both manufacturing and R&D.

"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.

Panasonic has made a global commitment to achieve Net Zero emissions in its own operations by 2030 and across its entire value chain by 2050. The Pilsen facility plays a pivotal role in advancing these targets enabling the company to scale production while aligning with ESG priorities that are increasingly important to policymakers and institutional investors.

Relocating key operations to Europe also serves as a strategic hedge against supply chain vulnerabilities rising geopolitical tensions in Asia and growing regulatory scrutiny around the carbon footprint of imported products.

This move strengthens Panasonic’s position as a frontrunner in the European clean heating market placing it in direct competition with established regional players such as Vaillant, Viessmann and Bosch Thermotechnology, each ramping up their heat pump capabilities in response to accelerating demand and favorable policy incentives.