Mitsubishi Electric plans Kentucky compressor conversion

Mitsubishi Electric US plans to convert its Maysville, Kentucky, automotive-components facility to manufacture heat pump compressors. The $143.5 million investment is expected to create 122 full-time jobs. Production will focus on twin-rotary variable capacity compressors for Mitsubishi Electric Trane HVAC US (METUS), expanding domestic supply of components largely manufactured in Asia.

Manufacturing and workforce

The company has manufactured automotive components in Kentucky since 1995 and trained workers through partnerships with Morehead State University and Maysville Community and Technical College. The proposed conversion retains a manufacturing presence in Maysville while changing the facility’s product programme.

The customer venture’s background

Mitsubishi Electric Trane HVAC began operating and serving customers in May 2018. Mitsubishi Electric Corporation and Ingersoll-Rand held equal ownership when the venture launched. Its service territory covered the United States and selected Latin American countries. The partners brought together their businesses in ductless and variable refrigerant flow (VRF) heating and air conditioning, with equipment intended for residential, light commercial and commercial applications.

The venture’s initial range comprised variable-speed air conditioners and heat pumps in several configurations. The product offering included:

Mini-split systems.
Multi-split systems.
Variable refrigerant flow systems.

Mitsubishi Electric

Keijiro Hora was named chief executive officer at the venture’s launch, continuing his existing role as president and chief executive officer of Mitsubishi Electric US. D. Andrew Kelso was appointed chief financial officer after serving as finance leader for Ingersoll Rand’s Industrial Products businesses. These appointments accompanied the start of the jointly owned business in 2018.

Conditional public support

Kentucky preliminarily approved up to $7 million in performance-based tax incentives over 15 years. Annual targets include maintaining 122 Kentucky-resident jobs and average hourly compensation of $53.32 including benefits. A separate $50 million federal grant selection remained pending final approval.