Pilsen, Czech Republic – August 29, 2025 – Panasonic today marked a major milestone in European production and distribution of sustainable heating and cooling solutions with the official reopening of its fully upgraded and expanded giga factory in Pilsen, Czech Republic.
The €320 million investment expands the facility’s capacity by 250% to 140,000 m², enabling production of up to 1.4 million indoor and outdoor heat pump units per year by 2030 for supply across Europe. The project also transfers production and R&D from South-East Asia to Europe, strengthening Panasonic’s local footprint while reducing its carbon impact.
The facility has been designed as a Net Zero factory, powered by a mix of on-site renewable generation – including a 1 MW rooftop photovoltaic system – and green energy purchases. Advanced energy efficiency measures include smart building management systems, waste heat reuse, water recycling, and the planned transition of the site’s vehicle fleet to EVs in 2026.
The opening ceremony was attended by the Prime Minister of the Czech Republic, Petr Fiala, who highlighted the national importance of the investment:
“The opening of this state-of-the-art heat pump production facility strengthens the competitiveness of Czech industry, brings new skilled jobs, and confirms that the Czech Republic offers attractive conditions for technologically demanding and innovative projects.”
European R&D Hub
A state-of-the-art R&D center has been established at the factory in partnership with the Technical University of Ostrava and University of West Bohemia. By 2028, the Pilsen team will oversee the full lifecycle of heat pump development, coordinating closely with Panasonic’s product planning division in Japan.
Driving Market Growth
With the European heat pump market valued at €12.2 billion in 2024 and projected to exceed €71 billion by 2034 (Global Market Insights), Panasonic is positioning Pilsen as a central hub for innovation and manufacturing.
“Europe is at the forefront of sustainability adoption. Our investment in Pilsen reflects our confidence in the market’s growth and ensures we can meet demand with locally produced solutions,” said Toshikatsu Fukunaga, CEO, Panasonic HVAC Europe.
Automation and Innovation
The Pilsen site integrates advanced robotics, AI, and automation to drive efficiency, with 80 robots already deployed and future plans for AGVs and AMRs. The factory also aims for 100% automation in component manufacturing.
Local Impact
The expansion supports the Pilsen region with high-value employment opportunities, stronger academia–industry collaboration, and a boost to the Czech Republic’s reputation as a European technology hub.
“Pilsen is in the Czech Republic’s own ‘Silicon Valley,’ making it the perfect location to leverage local talent and foster innovation,” said Radek Vach, Business Planning Director, Panasonic HVAC CZ.
Commitment to Green Impact
As part of its Panasonic GREEN IMPACT pledge, the company is targeting Net Zero across its operations by 2030 and across its value chain by 2050. The Pilsen facility is Panasonic’s second Net Zero factory in Europe, following Cardiff, UK, in 2024.
Paul Kenny, Director General of the European Heat Pump Association, emphasized the broader significance:
“The heat pump sector is boosting Europe’s energy security, our economy, and our path to decarbonisation. Today’s opening is a big step forward and a clear message that heat pumps will be at the heart of our future global energy system.”
