Daikin Europe N.V. has announced the expansion of its German heat pump manufacturing base in Güglingen, Germany. The expansion is part of the Daikin Europe’s strategic management plan for 2025, which aims to meet growing demand for heat pumps on the European continent by investing in local production capacity.
- Three new production lines will more than triple the existing factory output by 2025
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The expansion in Germany is based on a proximity strategy of producing close to the market
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The expansion enables to meet growing European heat pump market demand
Increasing heat pump production capacity in Germany
Daikin Manufacturing Germany GmbH has been steadily increasing its heat pump production volumes over the past years. With this new investment, the company will accelerate the expansion of its production capacity in Germany. To this end, Daikin acquired a neighbouring, 22.000m² large plot of land with production and office facilities in Güglingen. Refurbishment and integration of the facilities into the existing production site will allow Daikin’s German factory to produce more than three times its current volumes by 2025. The company will be looking for an additional 500 new employees to support its growth plans.
‘The expansion of our plant will enable us to ensure a stable supply for a rapidly growing market.’ Explains Filip De Graeve, Managing Director of Daikin Manufacturing Germany GmbH and Daikin Airconditioning Germany GmbH.
Proximity strategy assures timely availability of premium heat pumps in Europe
Daikin produces close to the markets it serves. The company’s residential hydronic heat pumps sold in Europe are fully designed and manufactured in Europe. This investment in its factory in Germany is based on Daikin’s proximity strategy. Hiromitsu Iwasaki, Vice President of Daikin Europe N.V. says ‘Daikin is the only manufacturer in the world who designs and produces heating, cooling and refrigeration equipment, as well as the compressors and refrigerants used in those technologies. Throughout our nearly 100 year history, we have developed a high level of technological expertise in heat pump technologies. With this investment in a factory in Germany, we create additional capacity to assure we can deliver more of our premium heat pumps on time to the European market’.
Investments for innovation and in support of the energy transition
Annual demand for residential heat pumps is expect to triple by 2025. ‘It is clear that heat pumps play an important role in the decarbonisation of our homes and businesses,’ says Martin Dieryckx, General Manager Daikin Europe N.V. Environmental Research Center. ‘As a global leader in the design and manufacturing of heat pumps, we are well placed to build the manufacturing capacity that is needed to support this transition, which is of great importance to Europe’s future.’
The investment announcement in Germany closely follows similar announcements about expanding its heat pump factory in Belgium, and the construction of a new heat pump factory in Poland. Earlier, Daikin Europe also announced it will boost its R&D activities, as the new EMEA Development Center in Ghent, Belgium is set to become Daikin’s global centre for heat pumps.
