Japanese electronics giant Panasonic has unveiled its expanded and upgraded factory in Pilsen, Czech Republic.

Panasonic invested around $373m (€320m) in the Panasonic Heating and Ventilation Air-Conditioning Czech site. The upgraded site will serve as its primary European production and research and development hub for its air-to-water heat pump solutions.

The expansion includes a newly constructed building, spanning 102,000sqm, expanding production capacity by 250% while also enhancing automation. Furthermore, it aims to address the growing market demand for air-to-water heat pumps. The annual capacity will reach 1.4 million units by 2030.

Panasonic is enhancing cost efficiency and quality control by increasing in-house production of essential components. These components include outdoor unit casings, air heat exchangers, copper piping, and printed circuit boards. It aims for an in-house production rate of around 70% for these core parts.

Additionally, the factory aims for carbon neutrality by 2050 and is targeting zero CO2 emissions by the end of 2025. Key initiatives include installing a 1MW solar power system and adding skylights for improved natural lighting in the new building.

Tetsumasa Mizuta, general manager of Panasonic Heating & Ventilation Air-Conditioning Czech, stated that the current production is on track to more than double in comparison with 2024.

“The actual production volume will depend on European demand for heat pumps, which is expected to rise according to our forecasts,” he added.

Czech Prime Minister Petr Fiala remarked that the investment strengthened the competitiveness of Czech industry.

“It will also create new skilled jobs, confirming that the Czech Republic offers attractive conditions for technologically demanding and innovative projects,” he added.