Panasonic Heating & Ventilation Air-Conditioning Czech (hereinafter referred to as Panasonic) has opened a new heat-pump manufacturing facility in Plzeň. This modern complex will significantly increase the Japanese company’s production capacity and, in the near future, will also form the European core of the brand’s research and development. CzechInvest assisted with the transfer of Panasonic’s R&D activities from Asia to western Czechia.
Panasonic has been one of the most significant foreign investors in Czechia since the second half of the 1990s. It initially manufactured televisions in Plzeň, where it later added Blu-ray players and recorders to its production programme. In recent years, the company has focused on heat pumps, which have been the only product manufactured by Panasonic in Plzeň since 2023. The product portfolio comprising air-to-water heat pumps with capacity of 3-30 kW for household and industrial use is now being transferred to a new plant, whose capacity has been increased by 250% to a total of 140,000 m2.
“Current production is on track to more than double in comparison with 2024, with plans to reach annual capacity of 1.4 million indoor and outdoor units by 2030. Of course, the actual production volume will depend on European demand for heat pumps, which is expected to rise according to our forecasts,” said Tetsumasa Mizuta, general manager of Panasonic Heating & Ventilation Air-Conditioning Czech.
The plant was opened on Friday, 29 August 2025, with dozens of important guests in attendance. The ribbon-cutting ceremony was performed by Panasonic Vice-President Eiichi Katayama, general manager of the Plzeň plant Tetsumasa Mizuta, Czech Prime Minister Petr Fiala, Japanese Ambassador to the Czech Republic Kansuke Nagaoka, CzechInvest CEO Jan Michal, and representatives of the city of Plzeň and the Plzeň Region.
“The opening of this first-rate heat-pump plant strengthens the competitiveness of Czech industry, while also creating new skilled jobs and confirming that the Czech Republic offers attractive conditions for technologically demanding and innovative projects. What we want in the Czech Republic are companies that produce complete products with high value added and companies involved in science and research. Our government will continue to actively support such investments,” said Czech Prime Minister Petr Fiala on the occasion of the opening.
In the 1990s, Panasonic was the first investor in the then recently established Borská pole industrial zone, which is now one of the largest in Czechia. Including the investment in the new plant, the total volume of Panasonic's investments in Czechia now amounts to more than CZK 27 billion. “Since its entry into the Czech market, the company has invested in a total of twelve projects and created nearly 9,500 jobs across the country. We value not only our decades-long business relationship, but also our Japanese partners’ ability to respond flexibly to the development of the market and to transform its original manufacturing plant into a modern operation with even higher value added. Every investor that is able to innovate and push forward its activities is of fundamental importance for the development and stability of the Czech economy, and we are pleased to support such investors in their activities,” said Jan Michal, CEO of CzechInvest.
An opportunity for technicians, developers and Czech suppliers
More than 700 people currently work at the complex and the number of employees will as much as double in relation to rising production capacity. In addition to human employees, there are eighty robots in operation at the facility and the company intends to undertake dozens of other automation projects in the coming years. “Our plans include the deployment of hundreds of robots and machines including, among other things, automated guided vehicles and autonomous mobile robots for delivering materials and transporting finished products. We are aiming for full, 100% automation in component manufacturing,” explained Radek Vach, head of strategy at Panasonic’s Plzeň plant.
The entire complex is designed with emphasis on sustainability. Thanks to a combination of purchased green energy and its own 1 MW photovoltaic power plant, the facility is carbon neutral. Other measures aimed at increasing the complex’s sustainability include the use of waste heat from production processes for heating the premises and the collection and reuse of rainwater. Intelligent building management optimises heating, ventilation and lighting in the manufacturing complex.
The strategic linking of research, development and production strengthens the brand's competencies outside of Japan and combines related processes. The same approach is applied to the selection of component and service subcontractors. “The closer to Plzeň, the better. Localisation is crucial, primarily for reasons of faster and easier logistics and reducing the environmental impact of transport. At present, more than 55% of supplies from subcontractors come from the Czech Republic or Europe generally and the goal for the coming years is to increase this share to 85%. Of course, this is a great opportunity for Czech companies. When approaching potential suppliers of components and services, we cooperate with, for example, the Plzeň Region, which has created a highly functional platform for bringing companies together,” added Radek Vach.
Research and development under the same roof with production
Within three years, the R&D centre will handle all of Panasonic's European research and development with focus on air-to-water heat pumps. “In strategic terms, the interconnection of research and development with production is extraordinarily important for our brand. Therefore, we are investing more than CZK 600 million in the establishment of the R&D centre in Plzeň and we are counting on top-notch partners to build and equip it. One of our key partners is the Technical University of Ostrava, which has completely designed and will build one of the research laboratories,” said Tetsumasa Mizuta, general manager of the Plzeň plant.
The Plzeň centre will carry out the complete development of heat pumps, from concept to final product. “Once the research centre is fully operational, we will gradually recruit dozens of engineers, who will conduct R&D for the entire continent,” added Tetsumasa Mizuta.
Alongside Germany and the United State, Japan is one of the largest foreign investors in Czechia. According to data from CzechInvest, Japan has invested the equivalent of CZK 122.5 billion in more than 160 projects in Czechia since the beginning of the 1990s. To date, however, 98% of those investments have involved purely manufacturing projects. The current project will increase the total volume of Japanese investments in research and development in Czechia by more than one-third. This is also the first time that Panasonic has built a new R&D centre for heat pumps outside of its traditional destinations in its home country of Japan or in Malaysia.
"This is clear proof that we offer an attractive environment and conditions for technologically advanced projects and investments with high value added. I see the construction of Panasonic’s R&D centre as an important milestone that will help to steer the Czech economy increasingly toward innovative projects, modern technologies and top-level development. Such projects strengthen our competitiveness while also opening up new opportunities for long-term sustainable growth. I am thus pleased that we were able to provide a state investment incentive for this project,” said CzechInvest CEO Jan Michal. Representatives of CzechInvest remain in contact with the investor and the parties are jointly preparing the next phases of development of Panasonic's activities in Czechia.