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200 jobs to go in Daikin heat pump restructure

GERMANY: Daikin is to transfer Hydrobox and Hydrokit heat pump unit production from its plant in Güglingen, Germany, to the Czech Republic, with the loss of some 200 jobs. 

The company blames weak demand for heat pumps and fluctuating and uncertain political support in EU countries. Hydroboxes and Hydrokits are critical components in air-to-water heat pump systems.

“With this restructuring, we aim to increase the Daikin Group’s productivity and promote the wider adoption of affordable products. We regret the impact of this measure on the Güglingen site, but the plan is designed to optimise production across Europe,” commented Martin Krutz, MD of Daikin Manufacturing Germany GmbH.

A company statement said that the relocation would require restructuring in Güglingen, potentially resulting in the reduction of more than half of the plant’s workforce – put at around 200 redundancies by separate reports. The restructuring and relocation of the production lines will be completed gradually by the end of June 2026.

Daikin Manufacturing Germany GmbH, based in Güglingen, is a sister company of Daikin Airconditioning Germany GmbH, based in Unterhaching. Daikin Airconditioning Germany GmbH, which is responsible for sales and customer service in Germany, is not affected by the restructuring and the associated job cuts.

The Güglingen site was formerly that of heating equipment manufacturer Rotex Heating Systems GmbH, which was acquired by Daikin Europe NV in 2008.

In 2022, the Güglingen plant was expanded with the installation of three new production lines to keep pace at that time with the growing demand for heat pumps in Europe.

Related stories:

€50m boost for Brno heat pump plant19 October 2022
BELGIUM: Daikin Europe has announced a €50m investment in its heat pump factory in Brno, Czech Republic. Read more…

Daikin to expand German heat pump plant – 4 October 2022
GERMANY: Daikin Europe has announced the expansion of its German heat pump manufacturing base in Güglingen, Germany. Read more…

Daikin boosts heat pump production11 April 2021
GERMANY: Daikin is boosting heat pump production at its heat pump manufacturing facility in Güglingen, Germany, with the addition of a new production line. Read more…

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