Mitsubishi Electric has announced plans to invest $143.5 million to retrofit an existing factory in Maysville, Kentucky, to produce variable-speed compressors, a critical component of high-efficiency heat pumps. This major project, undertaken by Mitsubishi Electric US Holdings, Inc., marks a significant step in meeting the growing demand for energy-efficient and low-greenhouse-gas HVAC solutions in the United States. Production is expected to commence in October 2027, with an initial estimated annual capacity of 1,000,000 compressors.
Currently, the Maysville facility, operated by Mitsubishi Electric Automotive America, Inc., manufactures and sells automotive electrical equipment. The retrofit will transform the plant into a state-of-the-art facility capable of producing advanced compressors that utilize twin rotary technology. These compressors are a vital element in ductless heat pump systems, known for their energy efficiency and suitability for residential and commercial applications.
This project will make Mitsubishi Electric the first company to manufacture these variable-speed compressors in the United States. Presently, over 90% of these compressors are produced in China and other Asian countries, making the new U.S.-based factory a strategic move to localize production. By shifting production closer to the North American market, Mitsubishi Electric aims to ensure a stable supply chain, improve responsiveness to demand fluctuations, and reduce lead times from manufacturing to delivery.
Supporting this ambitious project is a $50 million award from the U.S. Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains (MESC). This funding, distributed over three years, underscores the federal government’s commitment to advancing domestic manufacturing of energy-efficient technologies. Additionally, Mitsubishi Electric will leverage economic assistance programs provided by the Commonwealth of Kentucky, whose support was a key factor in selecting the site for the factory.
Mitsubishi Electric has a long history in the U.S. air conditioning and refrigeration market, which has been rapidly expanding since the company’s entry in 1980. In 2018, Mitsubishi Electric’s U.S. air conditioning and refrigeration systems business partnered with Trane Technologies plc, forming a joint venture called Mitsubishi Electric Trane HVAC US LLC. This collaboration has significantly strengthened the company’s position in the U.S. HVAC market, particularly in residential and commercial heat pump solutions.
The compressors produced at the Maysville factory will support the operations of Mitsubishi Electric Trane HVAC US LLC, bolstering the company’s domestic sales, distribution, and service capabilities. By manufacturing compressors locally, Mitsubishi Electric aims to enhance its ability to offer products tailored to regional customer needs while leveraging its broad portfolio of solutions across its businesses.
The establishment of the Maysville facility aligns with Mitsubishi Electric’s broader strategy to address the increasing global demand for energy-efficient and environmentally friendly cooling and heating systems. The global market for air conditioning and refrigeration is experiencing steady growth, driven by the transition to low-global-warming-potential refrigerants, advancements in energy-efficient technologies, and the worldwide push to reduce reliance on fossil fuels.
Recognizing this market trajectory, Mitsubishi Electric has identified its air conditioning and refrigeration business as a core area of growth within its portfolio. The company is enhancing its local production and consumption systems in key markets, such as the U.S., to better respond to regional demands and evolving customer preferences. The Maysville factory is a critical component of this strategy, allowing Mitsubishi Electric to build its manufacturing capabilities in the United States, improve cash flow efficiency, and strengthen its market position.
In addition to bolstering its business foundation, the local production of heat pump compressors will enable Mitsubishi Electric to better support the growing demand for sustainable HVAC solutions in the United States. By prioritizing the domestic development and production of cutting-edge technologies, the company aims to contribute to the global transition toward cleaner energy and reduced greenhouse gas emissions.
With this investment, Mitsubishi Electric continues to position itself as a leader in energy-efficient HVAC solutions while reinforcing its commitment to innovation, sustainability, and regional manufacturing excellence.
