Japanese electronics giant Panasonic is making a substantial investment in the Czech Republic by demolishing its 26-year-old television factory in Pilsen (Plzeň) and replacing it with a larger facility dedicated to the production of heat pumps. The investment comes in response to the growing demand for heat pumps in Europe. Panasonic plans to invest approximately 7.6 billion CZK (around $342 million) by 2026, with half of the investment allocated to technology and facility upgrades.

The new facility in Pilsen will become Panasonic’s European hub for the production of heat pumps, including research and development. This expansion is part of Panasonic’s strategy to align its operations with the changing energy landscape in Europe, which is increasingly moving away from coal and solid fuel sources. To support this transition, the European Union offers subsidies for the acquisition of heat pumps and photovoltaic sources, driving the demand for air-to-water heat pumps.

Panasonic aims to produce up to one million heat pumps annually by 2030, which will require a workforce of 3,000 employees. The company is actively recruiting new talent, particularly in technology-related positions. Radek Vach, the Director of Business Planning at Panasonic Heating & Ventilation Air-Conditioning Czech, emphasized that production will continue without interruption during the extensive reconstruction process to ensure all customer orders are fulfilled.

The expansion plan includes renovating existing buildings and halls that have been in use for the past 26 years, as well as constructing a new three-story hall with a total floor area of 100,000 square meters. The new facility will be shaped like an “L” and will encompass the second hall, which will be preserved. This expansion will also utilize the last available plot of land towards Tesco, increasing the total area of the pump production facility to 140,000 square meters.

The decision to shift from television manufacturing to heat pump production signifies Panasonic’s commitment to innovation and sustainability in line with the evolving needs of the European market. The company has already been producing internal heat pump units for Europe since 2018 and has observed strong demand for its heat pumps, ranging from three to 16 kW, in various European countries.

This investment not only positions Panasonic as a key player in the clean energy transition but also contributes significantly to the local economy in Pilsen by creating hundreds of job opportunities and driving technological advancements in heat pump technology.

Article by Prague Forum