DAIKIN started construction of new heat pump factory in Poland

This new factory will start production of heat pumps in July 2024 and the total investment would be 300 million euros.

Daikin has recently started construction of the new factory in Poland. This new factory will start production of heat pumps in July 2024 and the total investment would be 300 million euros (equivalent to 42.3 billion yen at the exchange rate of 1 euro=141 yen) as already announced. The new factory will create 1,000 jobs by 2025 and 3,000 jobs by 2030.

As the new production base in Europe, the new factory in Poland will serve to augment current production in Germany, Belgium, and the Czech Republic with production capacity quadrupling (compared to FY2021) by 2025. It will also help the company to create a production system with a stable product supply for the ever-growing heat pump market.

Over the past decade, the European heat pump market has grown by an average annual rate of 10% to achieve sales of 1 million units in 2021. The European Green Deal policy, which aims to eliminate greenhouse gas emissions in the EU region by 2050, has further accelerated the spread of heat pumps. Market expansion is forecast to hit annual sales of at least 3.5 million units by 2025.

In Europe, where combustion heating with boilers using fossil fuels such as coal and oil had been mainstream, Daikin began selling heat pumps, which are powered by electricity, as early as 2006 and has been working to develop the market. As a leading company in the European market, Daikin expanded its heat pump product lineup to meet customer needs in each country and increased production capacity by boosting capital investment and employment at existing factories in response to growing demand.

In its strategic management plan FUSION 25, Daikin has positioned Europe as the most important region for expanding its heat pump business. In expanding use of heat pumps in Europe, Daikin is striving to contribute to a sustainable society by reducing environmental impact.