Mitsubishi Electric Corporation will invest $143.5 million to retrofit its Maysville, Kentucky facility to produce variable-speed compressors for high-efficiency heat pumps. The factory, currently producing automotive electrical components, will begin compressor production in October 2027, with an initial capacity of one million units annually.
This marks the first U.S. production of twin rotary compressors for ductless heat pumps, a market currently dominated by imports from Asia. The move comes in response to growing demand in the U.S. for energy-efficient, low-emission HVAC solutions.
Mitsubishi Electric’s U.S. subsidiary, MELCO HVAC US, Inc., has also received $50 million in funding from the U.S. Department of Energy’s Manufacturing and Energy Supply Chains (MESC) office. The funding, allocated over three years, will support the factory retrofit. Economic incentives from the Commonwealth of Kentucky were also key in choosing the Maysville location.
The company’s U.S. air conditioning and refrigeration business has expanded rapidly since 1980, and the new facility will strengthen Mitsubishi Electric’s position in the growing U.S. market for energy-efficient HVAC systems. The move aligns with the company’s strategy to increase local production and meet shifting energy demands.
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