According to WIIW expert Zavarska, Eastern Europe’s low wages play a role, but not the primary one. So far, Daikin has also served the European market from factories in Malaysia. But the group wants to be closer to the future boom markets for heat pumps, even if wages are higher than in some Asian countries. “The residential heat pumps sold in Europe are designed and manufactured entirely in Europe,” says Daikin. And of course the demand for heat pumps is also growing in the Czech Republic, Poland and Slovakia.
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Another advantage of the location: In the Eastern European countries “there are already suppliers who have produced heating technology, including heat pumps,” says Zavarska. Companies could build on this existing know-how, for example among employees.