Daikin Europe N.V., a leading provider of innovative heating solutions, has unveiled plans to invest €300 million in a cutting-edge factory in ŁódĹş, Poland. This marks Daikin's first manufacturing facility in the country and will focus on the production of residential heat pump units. Scheduled to commence operations in July 2024, the new factory will join Daikin's existing production bases in Belgium, the Czech Republic, and Germany. The investment in the Polish factory is part of Daikin Europe's strategic management plan, FUSION 25, which includes a total investment of €840 million and additional investments in its current factories. By 2025, Daikin Europe's total investment in the region will exceed €1.2 billion.

Europe is a key target region for Daikin's heat pump heating business expansion, as outlined in FUSION 25. Toshitaka Tsubouchi, President of Daikin Europe, emphasizes the company's commitment to facilitating the transition from fossil fuel boilers to heat pumps. Strengthening product development and service capabilities has been a top priority, leading to the decision to establish a new factory in Poland. With the largest capacity in the Daikin Europe Group for heat pump heating output, the company aims to achieve the leading market share in major countries.

Hiromitsu Iwasaki, Vice President of Daikin Europe, highlights the company's efforts to meet the growing demand in Europe. Daikin is expanding production capacity through capital investments and increased employment in its existing heat pump factories across the continent. The establishment of the new factory in Poland demonstrates Daikin's commitment to responding effectively to market dynamics. The country's ample pool of skilled workers will play a crucial role, with the factory expected to employ 1,000 people by 2025. The investments made will enable Daikin to quadruple its production volume by 2025, ensuring a stable supply to a rapidly growing market. The proximity strategy remains paramount, with all heating products sold in Europe being manufactured within the continent.

Over the past decade, the European market for heat pump heating has experienced significant growth, with over 1 million units sold per year in 2021. Daikin Europe Heating and Renewables General Manager, Patrick Crombez, highlights the importance of heat pumps in achieving the European Union's climate neutrality goals outlined in the EU Green Deal. The ambitious targets set by the Fit for 55 package and the REPowerEU plan further emphasize the need to reduce emissions and fossil fuel dependency. Heat pumps are a vital component in achieving these objectives, and a wide adoption of heat pump heating is anticipated in the coming years. By 2025, the installation of at least 3 million heat pump heating units annually is projected, representing an impressive annual growth rate of approximately 30%. Daikin aims to reaffirm its leadership in the industry by investing in a sustainable and future-ready approach.

Daikin's investment in the new Polish factory underscores its dedication to advancing heat pump technology, promoting energy efficiency, and meeting the growing demand for sustainable heating solutions. By expanding its manufacturing capabilities and capitalizing on the skilled workforce in Poland, Daikin is poised to play a pivotal role in driving the adoption of heat pump heating in Europe and maintaining its position as an industry leader.