Germany's Stiebel Eltron to invest EUR 600m in heat pumps as demand surges

Stiebel Eltron GmbH is planning to pour over EUR 600 million (USD 599.1m) into the expansion of its heat pump production in the coming years as the German manufacturer is set to generate record sales in 2022 amid soaring demand for environmentally-friendly heating solutions.

The capital will be invested in capacity expansion, research and development and the creation of new jobs, the company said on Tuesday.

With the decision to increase production, Stiebel Eltron aims to meet the rapidly growing demand for heat pumps. As Germany is seeking to ditch Russian gas imports, people are increasingly turning to heat pumps with projections suggesting that new installations across the country could hit 250,000, or even 300,000, this year. This would by far exceed the rise of nearly 30% to 154,000 devices installed in 2021.

The brisk demand is boosting also Stiebel Eltron's performance. The family-owned company, which has been focusing on power-based heat pump heating systems for many years, plans to produce a record high of 80,000 heat pumps in 2022, up 60% from the previous year. This is expected to result in record revenues which could reach EUR 1 billion after EUR 830 million in 2021.

The environmentally friendly heating technology requires no oil and gas and is therefore of crucial importance for climate protection and for the security of energy supply in Germany, said Stiebel Eltron's managing director Kai Schiefelbein.

The company will continue to expand in this market and support Germany's ambitious target of installing 500,000 heat pumps annually from 2024 on, Schiefelbein added.

(EUR 1 = USD 0.999)

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