Daikin, a Japanese heating manufacturer, has decided to invest €300 million to open a heat pump factory in Ksawerów, near the Polish city of Lodz. It started building the new facility this week, with completion scheduled for 2024.

“Daikin’s new production site is the biggest foreign investment in Poland in recent years and the biggest ever for Lodz Special Economic Zone,” Polish Minister of Development Waldemar Buda said at the groundbreaking ceremony.

The site, which spans 320,000 square meters, will produce residential heat pumps and create 3,000 new jobs by 2030, said Daikin.

“The choice to build this new factory in Poland will allow Daikin to tap into the largest skilled talent pool in Eastern Europe and support direct job creation,” the company said. “The selected location has many logistical advantages in terms of access to markets and a stable supply chain.”

In October, Daikin announced plans to increase expand heat pump production capacity at its factory in Czechia. It also expanded its heat pump plants in Belgium and Germany in early 2022. The facilities produce indoor and outdoor heat pump units.

Poland's heat pump sales increased more than in any other market in Europe in 2022, up 120% year on year.