TOKYO - Mitsubishi Electric Corporation announced that it will invest 1.44 billion Turkish lira (113 million USD) in a new plant at Mitsubishi Electric Air Conditioning Systems Manufacturing Turkey Joint Stock Company (MACT), the company’s air-conditioner production base in Turkey. The expansion will expand MACT’s annual capacity for air-to-water (ATW) heat pumps* to 300,000 units, up by 100,000 units from current capacity, and room air conditioners to 1,100,000 units, up by 300,000 units. Production will begin in February 2024.

Mitsubishi Electric is growing its global HVAC business under an expansion strategy through 2025 that is focused especially on the European heating-system market. Conventional boiler-type heaters that rely on fossil fuel are rapidly being replaced with ATW heat pumps in line with Europe’s decarbonization policies, which is driving the rapid growth of the ATW market in Turkey and across Europe. Meanwhile, ongoing climate change is stimulating increased demand for room air conditioners, which are increasingly being viewed by local consumers as commodities rather than luxuries.

Eco-friendly CO2-emission-reduction measures at the plant will include enhanced thermal insulation, exhaust-air heat recovery and effective use of renewable energy.

Mitsubishi Electric has continued to invest in MACT since establishing the subsidiary company in 2016, including making an additional investment of 222 million Turkish lira (17.3 million USD) in 2021.