Panasonic has officially opened its fully modernised and expanded heat pump gigafactory in Pilsen, Czech Republic, marking one of the company’s most significant European investments. The upgraded plant, built with a €320 million investment, will become a central hub for the production and development of Panasonic heat pump technologies for the entire European market.
By 2030, the Pilsen complex will be capable of producing up to 1.4 million indoor and outdoor heat pump units annually, making it one of Europe’s largest heat pump production sites. The factory now covers 140,000 m², a 250 percent increase in capacity compared to the previous facility, following the transfer of production and R&D operations from Southeast Asia to Europe.
A Key Step in Panasonic’s “Green Impact” Strategy
The investment aligns closely with Panasonic’s GREEN IMPACT environmental vision, focusing on reducing emissions, increasing local production for local markets and accelerating Europe’s transition away from fossil fuels. The Pilsen plant operates as a Net Zero factory, powered by green electricity and an on-site 1 MW rooftop solar installation. It features smart building systems, energy-saving LED lighting, heat-recovery technology and rainwater reuse.
Prime Minister Petr Fiala attended the opening ceremony, underscoring the national importance of the project.
“This state-of-the-art facility boosts the competitiveness of Czech industry, creates skilled jobs and confirms that Czechia offers excellent conditions for advanced and innovative investments,” he said.
Producing Heat Pumps in Europe, for Europe
Demand for heat pumps in Europe is rising sharply as countries phase out fossil-fuel heating. The European heat pump market—valued at €12.2 billion in 2024—is expected to exceed €71 billion by 2034.
Panasonic HVAC Europe CEO Toshikatsu Fukunaga noted that European consumers are embracing sustainable energy solutions rapidly.
“Our investment in Pilsen reflects our confidence in the long-term growth of the European heat pump market and our commitment to supporting that demand,” he said.
The facility has already more than doubled its annual output in 2024–2025, and production momentum continues to grow.
New R&D Centre Focused on Next-Generation Heat Pump Technology
Alongside production, Panasonic has established a new European R&D centre on-site, developed in cooperation with local academic institutions. One of the main laboratories is being designed and constructed by the Technical University of Ostrava. By 2028, the Pilsen R&D division will manage the entire lifecycle of heat pump development, from concept and design to final product.
Bringing R&D and manufacturing together will significantly accelerate innovation, reduce logistics costs and improve Panasonic’s ability to respond to evolving market needs.
Automation, Robotics and AI Drive Efficiency
The new plant is built for the future, featuring:
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80 industrial robots currently in use
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Infrastructure ready for AGVs and AMRs
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Plans for 100% automation in component manufacturing
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AI-driven production optimisation
These technologies will help Panasonic maintain peak production capacity while supporting a highly skilled workforce.
Strengthening the Local Economy and Talent Pipeline
The investment will generate high-value jobs and strengthen Pilsen’s position as one of Czechia’s leading high-tech regions. Panasonic’s long-term collaboration with the University of West Bohemia supports engineering education and provides practical training for students.
“Pilsen lies in the heart of Europe and has become home to an impressive tech ecosystem. It’s the ideal location for expanding our European HVAC operations,” said Tetsumasa Mizuta, Managing Director of Panasonic HVAC CZ.
Business Planning Director Radek Vach added, “The region offers a highly qualified workforce and excellent opportunities for collaboration with local institutions. It’s the perfect foundation for our future growth.”
