Nidec Global Appliance will invest $US70m to increase output at its Embraco refrigeration compressor and condensing unit factories in Austria, China, Brazil and Mexico.
New production lines will increase the current capacity of 45 million compressors and condensing units to over 55 million per year.
Nidec Global Appliance CEO, Valter Taranzano, said the investment is due to COVID-19 as more people spend time at home using appliances.
He said more people at home means more consumption of fresh food, increasing the demand for refrigeration in the food retail sector, such as supermarkets and convenience stores.
Nidec also recognises cooling as a key factor in the health and scientific industries, two sectors that had a demand increase for refrigeration due to Covid-19.
With three business units – commercial refrigeration equipment, compressors and motors for residential appliances, and components for HVAC systems – Nidec says it plans to continue expanding its portfolio as well as operations, which currently involves 15,000 employees in 16 manufacturing plants.
Nidec will invest $5 million at its Fürstenfeld factory in Austria to start production of two variable speed models, FMX and VES, for the European market.
In China the company’s manufacturing site in Beijing will receive $3 million to increase the annual production capacity of VES, VEM and FMX for the Asian market (mainly China and Japan), Europe and the United States.