Bosch said it will invest a total of €100 million in a heat pump factory in Aveiro near Porto, Portugal, by the end of 2026.

The sum will be used to finance new laboratories, two production buildings, and additional heat pump production lines. The group said it also wants to create an unspecified number of new jobs there in the medium term.

Along with Eibelshausen near Marburg and Tranås in Sweden, Aveiro is one of the most important sites in Bosch's development and production network for heat pumps. The group wants to invest €1 billion in this segment by the end of the decade.

In April, Bosch said it would invest €225 million in setting up a production facility for heat pumps in Poland.

The Bosch Home Comfort Group has been developing and producing hot water heating technologies in Aveiro for many years. At the facility, Bosch manufactures the outdoor units and wall-mounted indoor units for the new, according to the manufacturer, particularly quiet generation of heat pumps Compress 5800i AW and Compress 6800i AW with the environmentally friendly refrigerant propane.

A production line for the indoor unit for this new product line started in Eibelshausen, Germany, at the beginning of the year. Some of the outdoor units are also produced in Tranås, Sweden. For the Compress 5800i AW, the manufacturer also offers an electricity meter/sensor that makes it possible to combine the heat pumps with any existing photovoltaic system and battery storage solution in the house.

“Our engineers, researchers and developers work hand in hand within our manufacturing network and develop heat pumps that are state-of-the-art in technology,” said Jan Brockmann, CEO of the Bosch Home Comfort Group. “With the high investments and further expansion in Aveiro, we are driving forward electrification in the building and combining living comfort with green technology.”