Panasonic Corporation announced that it will accelerate its growth strategy for its Heating & Ventilation A/C Company (HVAC Company) for the air-to-water (A2W) heat pump and hydronic systems business in the European market. As part of this strategy, the company will invest an additional 15 billion yen in its Czech Plant to increase production of A2W heat pumps, for which demand is growing. Combined with the investment already announced last year, the total investment in the European region amounts to 80 billion yen.
On April 1, 2023, the HVAC Company will establish a HVAC Business Division Europe in Germany to transfer development, manufacturing and sales functions to the region and shift to regionally optimized management.
Europe is at the forefront of efforts to transition to a carbon-free society. While the demand for energy-efficient and other environmentally-friendly products is growing, the industry is required to comply with regulations on CFCs* 1, which are used as refrigerants in air conditioners, in order to prevent global warming.
Under these circumstances, the company will focus on Europe as a priority region and accelerate its growth strategy to expand its business. The key points of the strategy are as follows.
Investment of 80 billion yen in the expansion of business in Europe
Investment in Europe will amount to 80 billion yen, including 50 billion yen to strengthen the A2W business announced in October 2022, an additional 15 billion yen for the Czech Plant, and 15 billion yen for the acquisition of Systemair's air-conditioning business announced in November 2022.
In order to meet growing demand and strengthen profitability, the Czech plant has decided to double the area of the new building compared to the original plan and to increase production facilities. Panasonic plans to further expand its A2W production capacity to 1 million units globally in the medium term.
Following the completion of the 15 billion yen acquisition of the air-conditioning business*2 of Sweden's Systemair at the end of February, the HVAC Company will accelerate the hydronic systems business with products manufactured at factories in France and Italy. This enables Panasonic to offer a complete lineup of hot-water supply, heating, and air-conditioning equipment for residential and commercial use, and provide solutions to meet a wide range of needs.
Establishment of the HVAC Business Division Europe along with strengthening of the development function in the region
To respond quickly and flexibly to the rapidly expanding market for environmentally friendly products, such as A2W heat pumps and hydronic systems, the HVAC Company will establish a HVAC Business Division Europe in Wiesbaden, Germany. By establishing a management organization at the forefront of the market, the company aims to ensure the seamless operation of development, production, and sales, and to enhance the competitiveness of its business.
On the development side, a new R&D center will be established in Milan, Italy, to develop products and services that meet local needs. The R&D center will develop residential and commercial hydronic systems and models that use low global warming potential (GWP) refrigerants, as well as conduct research on clean technology, sensor technology, and indoor air quality. It will also strengthen cloud development to expand IoT-based services for customers after equipment delivery. Remote monitoring and fault detection of equipment will reduce the management workload and enable timely inspections and repairs. In addition, the visualization of energy consumption and air quality will enable energy savings and an optimal indoor environment, resulting in the safe, reliable, and comfortable use of products for a long time.
*1. The Kigali Amendment to the Montreal Protocol (an environmental treaty to phase down the consumption and production of ozone-depleting substances and greenhouse gases), the EU F-Gas Regulation (regulations to reduce the release of fluorinated greenhouse gases), and other regulations.
*2. Manufacturing and marketing of commercial chillers, heat pump air conditioners, fan coil units, etc.
