Strengthening Production Capacity to Meet Growing Demand for Decarbonized Heating Systems
Across Europe, the heating market is undergoing a major transformation. Traditionally, gas and oil boilers have been the standard for residential heating. However, due to climate policies aimed at reducing CO2 emissions and concerns over energy security, the shift toward heat pump systems is accelerating. The instability of natural gas supply from Russia has further pushed European countries to reduce dependence on fossil fuels.
In this context, Panasonic HVAC Czech (PHVACCZ) has completed and started full-scale operations of a new building at its Plzeň factory on August 29, 2025. The site is dedicated to the production of Air-to-Water heat pump systems (A2W), which are expected to see long-term growth in Europe.
A2W systems use heat from the air to produce hot water, which is then circulated through buildings for heating. Compared to combustion-type boilers, they provide higher energy efficiency and lower environmental impact. When combined with renewable energy, A2W can contribute significantly to Europe’s decarbonization goals.
The factory was originally established in 1996 as a television production site. It began producing A2W in 2018 and in 2023 became the first Japanese manufacturer to produce outdoor units using natural refrigerant R290. In 2024, a local R&D division was added, strengthening the site’s role as a hub for both development and production.
With the completion of the new building, production capacity will increase from 150,000 units to a potential maximum of around 700,000 units in the future. The introduction of robotics and automation will further enhance efficiency, with a goal of 100% unmanned operation in component processing by 2028. At the same time, Panasonic is promoting in-house production of key parts such as heat exchangers, copper piping, and printed circuit boards, aiming for an in-house production rate of around 70%.
In addition, the new building is equipped with a 1 MW solar power system and skylights to maximize natural light, supporting the company’s target of achieving zero CO2 emissions at the site within 2025. This initiative aligns with Europe’s broader vision of achieving carbon neutrality by 2050.
This move not only strengthens Panasonic’s production capabilities but also underscores its competitiveness in the European market. As demand for A2W continues to grow, the Czech factory is set to become a core base supporting Panasonic’s environmental technology business.
Key Terms Explained
- A2W (Air to Water)
A system that uses heat from the air to produce hot water for heating and domestic use. It reduces reliance on fossil fuels and cuts CO2 emissions. - Natural Refrigerant R290
A propane-based refrigerant with very low environmental impact. Considered an eco-friendly solution in line with European environmental regulations. - Carbon Neutrality
Achieving net-zero greenhouse gas emissions. It is a key requirement under European policy frameworks, both for product development and manufacturing operations.
