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Stiebel Eltron UK to benefit from German branch investment

Stiebel Eltron UK’s supply chain is set to receive a boost as the company’s German branch looks to invest hundreds of millions into increasing its capacity, research and development, and creating new jobs.

The investment will have a positive knock-on effect across the entire company as it feeds into its supply chain and makes it more robust, Mark McManus, Stiebel Eltron UK managing director said.

With demand for environmentally friendly electricity-based heating booming, the German branch of Stiebel Eltron expects to have produced 80,000 heat pumps – an increase of 60 per cent compared to the previous year.

As a result, the company is planning further investments of more than €600 million. Production capacities will be expanded, research and development financed, and 400 new jobs will be created.

Dr Kai Schiefelbein, managing director of Stiebel Eltron, said: 'We have specialised in electricity-powered heat pump systems 'Made in Germany'. With experience of almost 50 years of in-house development work, we are among the technical market leaders.'

'Environmentally friendly heating technology does not require oil and gas and is therefore of outstanding importance both for climate protection and for Germany's energy supply security. We will continue to expand in this market.'

The investment in Germany comes following huge demand for heat pump systems. 154,000 units were installed in Germany in 2021 – these are 34,000 more than the year before.

For the current year, an even greater leap to 250,000 heat pumps is now expected, and perhaps even the 300,000 mark could be reached.

The German branches rise in demand coincides with that of Stiebel Eltron UK, with the manufacturer reporting a 70 per cent increase in heat pump sales, when compared to last year.

Additionally, the UK branch, based in Bromborough, Wirral, has placed significant investment into its own recruitment drive as well as into its own facilities, with the company set to launch a brand-new training centre and showroom this Autumn.

Mr McManus said: “It’s fantastic to see demand for heat pumps continuing to rise, and the investment made by Stiebel Eltron in Germany is a significant statement from the company that it will meet demand.

“Not only will this have a positive impact in Germany, but also here at STIEBEL ELTRON in the UK as our supply chains become stronger as a result, which will in turn help us to fulfil our commitment to helping the UK move away from fossil fuel boilers, while supporting the Government’s ambition to install 600,000 heat pumps annually by 2028.”

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15 September 2022


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