The expansion sees the beginning of Stiebel Eltron’s €600 million investment into increasing capacity, research and development, and creating new jobs in Germany.

The new warehouse extension and investment will strengthen the UK branch’s impact in the renewable heating market as the company’s supply chain and product offering becomes stronger, Mark McManus, Stiebel Eltron UK managing director said.

The company’s German operations has seen huge demand for heat pump systems, prompting the company’s investment. 154,000 units were installed in 2021 – these are 34,000 more than the year before.

Meanwhile, it has also seen a rise in demand, with the manufacturer reporting a 70 per cent increase in heat pump sales in the UK, when compared to last year.

The investment is set to see production capacities expanded, research and development financed, and 400 new jobs created. The Holzminden warehouse expansion at the company’s German headquarters is a key part of this.

Easily visible from the large employee car park, the construction site sits next to the finished goods warehouse at the North Plant and will be built in the coming months. The existing 9,600 square metres of storage pace will be supplemented by 6,000 square metres.

The site has already been prepared for several weeks. Ground has been removed and has been levelled already, with the main construction work almost done so that the building will be ready in November.

Stiebel Eltron managing director Dr Kai Schiefelbein said: “After a successful 2021, the demand for heat pumps has risen massively this year, and we naturally want to meet this demand in the best possible way.

“The expansion of production, logistics and our service offering is therefore a necessary step in the successful development of our company.”

Mark McManus, managing director, Stiebel Eltron UK said: “As we look to reduce our environmental impact, demand for heat pumps and renewable heating systems is only going to increase. The expansion of the Holzminden warehouse is a signal of intent from the company that we are ready to meet this.

“Not only will this positively affect Germany it will further strengthen the company’s operations in other regions as capacity and production increases.

“As the company’s supply chains become more robust, Stiebel Eltron UK will be well placed to utilise this and help inspire a shift away from fossil fuel boilers across the country, while supporting the Government in delivering the installation of 600,000 heat pumps annually by 2028.”