Dive Brief:
- Mitsubishi Electric US is repurposing an existing facility in Kentucky to build heat pump compressors, according to the state governor’s July 25 press release.
- The $143.5 million investment will create 122 new jobs in Maysville, continuing the electronics manufacturer's reign as the second-largest employer in the city, according to the release. Mitsubishi can also receive resources from workforce service providers as part of the state’s incentives.
- The facility will produce twin-rotary variable capacity compressors, a key technology used in heat pump systems for Mitsubishi Electric Trane HVAC US, its joint venture with Trane Technologies.
Dive Insight:
The Maysville facility had produced automotive components for over 25 years. Mitsubishi Electric initially built out the local workforce by partnering with Morehead State University, the Maysville Community and Technical College and more, according to the release.
The Kentucky investment aims to grow the domestic heat pump production capacity to meet the anticipated increased demand for the products. A significant majority of the company’s compressors are currently built in Asia, according to the release.
In November 2023, the electrical equipment manufacturer received a $50 million grant from the Department of Energy. Mitsubishi Electric was one of the nine chosen for the agency's $169 million first round of funds to accelerate domestic heat pump manufacturing capabilities.
Mitsubishi Electric aims to have all its factories and offices net-zero by 2030. The planned Kentucky investment will equip the facility with solar panels, advanced heat pumps and energy management controls, according to the DOE release.
The department is focusing on boosting clean heat and cooling systems made in the U.S. It’s currently hosting a heat pump technology challenge, introduced in 2021, to encourage the adoption of heat pump technologies in offices, schools, hospitals, military bases and other critical facilities in cold climates.
Last week, the DOE announced another $85 million for the second round of awardees — A.O. Smith received money to expand its facilities in Tennessee; Bitzer Scroll Inc. will increase production capacity in New York; Daikin got $39 million for retrofitting a production line in Texas; and Modine Manufacturing Co. will use the money to boost production at its Texas and Rhode Island facilities.
