More than 200 jobs are expected to be created at a new factory making heat pumps for Vaillant.
The boiler manufacturer, which has its UK headquarters in Belper, is taking a 129,000 sq ft unit at the new St Modwen Park Derby scheme being built near Pride Park by St Modwen Logistics.
The factory is expected to open next year to meet growing demand for heat pumps which can replace traditional boilers by using naturally occurring heat stored in the ground. The Government has set a target of installing 600,000 heat pumps per year by 2028.
The new site will support Vaillant’s plans to more than double production of its aroTHERM plus air source heat pump and follows the opening of a multi-million-pound heat pump production line in Belper last November.
Vaillant Group UK managing director Henrik Hansen said the expansion would play a part in delivering a “net zero future” and creating valuable new jobs.
He said: “Our investment into the UK production of heat pumps last year was a real milestone for the business, which not only saw us invest into the future of our industry but also into Derbyshire and the local community.
“Following the continued growth of low carbon technologies, Vaillant remains committed to decarbonising the UK’s homes and commercial buildings.
“Of course, we understand there is no single solution when it comes to heating our homes in the UK as the breadth of property type is diverse.
“Heat pumps are a here and now technology that can offer decarbonisation benefits, however, the future is likely to be made up of a mix of low carbon technologies.
“Ultimately, we want to help consumers make an informed choice about which heating technology will work for both their lifestyle and their property, and our new site will ensure, whichever solution suits their requirements, we are able to deliver it.”
Derby City Council leader Councillor Chris Poulter said: “We’re thrilled that Vaillant has chosen to further invest in Derby St. Modwen Park is an exciting development with the potential to bring huge investment and many jobs to the city.”
John Forkin, managing director of inward investment organisation Marketing Derby, said: “We have been working with the team at Vaillant, together with our partners at the city council and St Modwen, during the past year to secure this landmark investment.”
Ben Silcock, development and leasing manager at St. Modwen Logistics, said: “We are incredibly proud of our work at St. Modwen Park Derby, and we are really pleased to welcome a company as prestigious as Vaillant.
“It is fitting that Vaillant have chosen this sustainable warehouse to manufacture products which help people to reduce energy consumption levels and lessen their environmental impact.”