Daikin Europe 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.
The expansion includes three new production lines to triple the existing factory output by 2025.
The expansion in Germany is based on a proximity strategy of producing close to the market
Annual demand for residential heat pumps is expected to triple by 2025, according to Martin Dieryckx, general manager of Daikin’s environmental research centre.
‘It is clear that heat pumps play an important role in the decarbonisation of our homes and businesses, he said.
“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.
Daikin Europe has also announced plans to 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.
Daikin Manufacturing Germany GmbH has been steadily increasing its heat pump production volumes in recent 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 for the increased production. The company will be looking for an additional 500 new employees to support its growth plans.
Managing Director of Daikin Manufacturing Germany GmbH and Daikin Airconditioning Germany GmbH, Filip De Graeve, said 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,” he said.