Mitsubishi Electric to Establish Heat Pump Compressor Factory in Maysville, Kentucky!

Mitsubishi Electric Corporation has announced an investment of $143.5 million to retrofit its Maysville, Kentucky factory for the production of variable-speed compressors. These compressors are a critical component of high-efficiency heat pumps designed to meet the increasing demand for energy-efficient HVAC solutions in the United States. Production is scheduled to commence in October 2027, with an initial annual capacity of 1,000,000 compressors.

This facility will mark the first instance of twin rotary technology compressors for ductless heat pumps being manufactured in the United States. Currently, over 90% of such compressors are produced in China and other Asian countries. By establishing local production capabilities, Mitsubishi Electric aims to create a stable supply chain, reduce dependency on imports, and address regional customer needs more effectively.

The project is supported by a $50 million award from the U.S. Department of Energy (DOE) under its Manufacturing and Energy Supply Chains (MESC) program. This funding will be allocated over three years to support the retrofitting of the factory. Additionally, Mitsubishi Electric is leveraging economic assistance programs from the Commonwealth of Kentucky, which were pivotal in the company’s decision to establish the facility in Maysville.

Mitsubishi Electric has been expanding its U.S. HVAC and refrigeration business since 1980. In 2018, the company formed a joint venture with Trane Technologies plc, resulting in Mitsubishi Electric Trane HVAC US LLC, to meet the growing demand for residential and commercial heat pump solutions. The compressors manufactured at the new facility will supply products distributed by this joint venture, further enhancing the company’s domestic sales and service capabilities.

The establishment of the Maysville factory reflects Mitsubishi Electric’s broader strategy to localize production, improve cash flow, and reduce lead times from production to sales. By focusing on energy-efficient HVAC solutions, Mitsubishi Electric aims to strengthen its position in the U.S. market and respond to the global shift toward sustainable technologies.

The company sees the global market for air conditioning and refrigeration systems continuing to grow due to rising demand for energy-efficient solutions and low-global-warming-potential refrigerants. Mitsubishi Electric has identified the air conditioning and refrigeration systems business as a key growth area in its portfolio and is committed to bolstering local development and production capabilities to meet the evolving market needs.

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