The upgraded site now spans 140,000 m² and is expected to reach an annual output of 1.4 million units by 2030, supplying residential and commercial markets across Europe. This move shifts production and R&D from Southeast Asia to Europe, aiming to shorten lead times and reduce carbon emissions through local manufacturing.
The facility operates as a Net Zero site, powered by a 1 MW rooftop solar system and green energy purchases. It includes smart building controls, heat recovery systems, and rainwater reuse. Panasonic plans to transition its vehicle fleet to electric in 2026.
Czech Prime Minister Petr Fiala attended the opening, stating: “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.”
Panasonic’s European R&D hub is now co-located at the Pilsen site, developed in partnership with the Technical University of Ostrava and the University of West Bohemia. By 2028, the team will oversee the full development lifecycle of heat pumps, coordinating with Panasonic’s product planning division in Japan.
Toshikatsu Fukunaga, CEO of Panasonic HVAC Europe, noted: “We’re seeing a marked uptick in interest in heat pumps in the European market, and we are anticipating this to be reflected in demand in the next few years.”
The factory currently deploys 80 robots and is preparing for full automation in component manufacturing. Panasonic aims to produce 70% of key components in-house, including heat exchangers and circuit boards, to improve cost control and quality assurance.
Paul Kenny, Director General of the European Heat Pump Association (EHPA), commented: “Today’s factory reopening is both a big step forward on that journey and a clear message to decision-makers… that heat pumps will inevitably be at the heart of our future global energy system.”
Panasonic’s broader sustainability goals include achieving Net Zero across its operations by 2030 and across its value chain by 2050. The Pilsen site joins 44 other Net Zero factories globally, including one in Cardiff, UK.
The local Pilsen region will benefit from high-value employment opportunities and stronger academic–industry collaboration. Panasonic’s long-standing cooperation with Czech academia supports science and engineering education, including practical training for students.
Tetsumasa Mizuta, Managing Director of Panasonic HVAC CZ, said: “Panasonic began operations in Pilsen in 1997. A pioneer of investments in the country, Panasonic has strong relationships and networks – including government and supply chain – in the Czech Republic, which we plan to leverage as we grow our team in Pilsen.”
Radek Vach, Business Planning Director, added: “Pilsen itself is in the Czech Republic‘s own ‘Silicon Valley,’ with many high-growth and innovative tech companies nearby, making it the perfect location to leverage and support local talent and foster connections.”