Daikin Europe N.V. has announced the expansion of its German heat pump manufacturing base in Güglingen, Germany. The expansion is part of Daikin Europe’s strategic management plan for 2025, which aims to meet the growing demand for heat pumps on the European continent by investing in local production capacity. 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 Daikin’s German factory to produce more than three times its current volumes by 2025.
Daikin produces close to the markets it serves. The company’s residential hydronic heat pumps sold in Europe are fully designed and manufactured in Europe. This investment in its factory in Germany is based on Daikin’s proximity strategy. With this investment in a factory in Germany, it creates additional capacity to assure it can deliver more of its premium heat pumps on time to the European market.