Mitsubishi Electric will invest $US113 million in a new plant in Turkey where the company’s production base is located.
The investment will expand annual capacity for air to water heat pumps to 300,000 units. That is an increase of 100,000 units from current capacity.
Production will begin in February, 2024.
Mitsubishi Electric is growing its global Heating, Ventilation and Air-Conditioning (HVAC) business under an expansion strategy through 2025 that is focused especially on the European heating-system market.
Conventional boiler-type heaters that rely on fossil fuel are rapidly being replaced with heat pumps in line with Europe's decarbonization policies, which is driving the rapid growth of the this market across Europe.
Meanwhile, ongoing climate change is stimulating increased demand for room air conditioners, which are increasingly being viewed by local consumers as commodities rather than luxuries.
Eco-friendly CO2-emission-reduction measures at the plant will include enhanced thermal insulation, exhaust-air heat recovery and effective use of renewable energy.