Mitsubishi Electric Corporation is investing $143.5 million to retrofit a Kentucky factory to make compressors for high-efficiency heat pumps.
The production of variable-speed compressors, which are key components of high-efficiency heat pumps, is expected to start in October 2027.
The Maysville, Ky.-based factory currently manufactures and sells automotive electrical equipment. When the retrofit is complete, the revamped factory will represent the first time that variable-speed compressors using twin rotary technology for highly efficient ductless heat pumps will be manufactured in the United States.
More than 90 percent of these compressors for ductless heat pump systems are currently built in China and other countries in Asia.
While the company will make a significant investment in this project, Mitsubishi’s U.S. subsidiary, MELCO HVAC US, received a $50 million award from the U.S. Department of Energy (DOE)’s for the production of high-efficiency heat pump technology. This funding will be allocated over three years for the retrofitting of the U.S. factory. MELCO HVAC US also utilized the economic assistance programs of the Commonwealth of Kentucky.