Mitsubishi to Revamp U.S. Plant for Compressor Production

TOKYO — Mitsubishi Electric Corp. will spend $143.5 million to retrofit a factory in Maysville, Kentucky, to make the variable-speed compressors that are a key component of high-efficiency heat pumps.

The Mitsubishi Electric Automotive America Inc. plant in Maysville currently manufactures electrical equipment for the automobile industry. Production of the compressors, scheduled to start in October 2027, is expected to help the company meet growing demand in the U.S. for low-GWP and energy-efficient HVAC solutions, according to a statement from Mitsubishi. The company estimates that the factory will be able to produce 1 million compressors each year.

The revamped factory will be the first in the U.S. to manufacture variable-speed compressors that use twin rotary technology for highly efficient ductless heat pumps, Mitsubishi said. More than 90% of these compressors for ductless heat-pump systems are currently built in Asian countries.

Mitsubishi Electric’s U.S. subsidiary, MELCO HVAC US Inc., has received $50 million from the U.S. Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains for the domestic production of high-efficiency heat-pump technology. That money will be allocated over three years for the retrofitting of the Maysville factory, the company said.

MELCO HVAC US will also use economic assistance programs from the state of Kentucky for revamping the factory; Mitsubishi Electric’s said support from the DOE and the state were key factors in the decision to locate the compressor factory in the U.S.

The compressors built in Maysville will be used in products distributed by Mitsubishi Electric Trane HVAC US, a joint venture between Mitsubishi and Trane Technologies, to further expand its domestic sales and service presence and capabilities, the company said.