As global demand continues to grow for high-efficiency, variable-speed, and natural refrigerant-ready compressors, manufacturers are rethinking their supply chains. One of the most recognized names in refrigeration technology: Embraco (part of Nidec Global Appliance) is taking a major step with the construction of a new $120 million compressor factory in India.
While this announcement may not seem immediately relevant to HVAC-R distributors in North America, it highlights how global manufacturing strategies are rapidly evolving. Moves like this signal a shift toward more diversified and resilient supply chains, as well as the growing importance of energy-efficient, low-GWP, and natural refrigerant solutions worldwide. These changes are already shaping sourcing decisions and technology adoption across the industry, making it essential for stakeholders everywhere to stay informed as the global HVAC-R landscape continues to transform
Below is the official press release from Nidec Global Appliance, including full details of the investment.
Embraco compressors to be manufactured also in India
Strategic investment from Nidec Global Appliance, part of ACIM (Appliance, Commercial and Industrial Motors) business unit, boosts local refrigeration market
Embraco, a global provider of refrigeration technology for the residential and commercial cold chain and part of Nidec Global Appliance (GA), has announced the production of its compressors in India, with the establishment of a manufacturing facility in the country, located in Chhatrapati Sambhaji Nagar (Aurangabad), in the state of Maharashtra.
This expansion underscores GA’s commitment to meeting the growing demand for refrigeration solutions in India and strengthens its presence in the region. Manufacturing Embraco compressors for residential and commercial refrigeration, alongside electronic components, the new factory will have an annual production capacity of 6 million units and is set to begin operations in the second half of 2026.
With a total investment exceeding $120 million, the plant will have a built-up area of 55,000 square meters. Once fully operational, the facility is expected to create between 750 and 1,000 direct jobs, strengthening the local workforce and fostering its technological expertise in refrigeration solutions.
“This investment marks a key milestone in our strategy to grow and strengthen our business across international markets,” said Alberto Casnati, President of Nidec Global Appliance, a platform of ACIM. “India’s refrigeration market is expanding rapidly, in step with the country’s strong economic momentum. This new facility will allow us to better meet local demand with high-efficiency, locally produced solutions for both the household and commercial sectors. We are grateful for the support and collaboration of both the Maharashtra state government and the Indian federal government, whose engagement played an important role in our decision to invest in this facility’’ , added the executive.
Strengthening local manufacturing and innovation
The new plant will focus on producing four Embraco compressor series, which carry the latest advancements in refrigeration technology:
- Fixed-speed models ES and EL: the two latest launches of Embraco’s fixed-speed compressors portfolio, marked by compactness, energy-efficiency, low noise levels, reliability and the use of natural refrigerants. Both are suited for residential refrigeration, with ES having also a version for commercial applications.
- Variable-speed models FMS and VLT: The FMS is designed for residential refrigeration appliances and the VLT for commercial refrigeration. Equipped with variable-speed (inverter) technology, they provide enhanced energy savings, low noise and vibration, improved temperature stability, and faster cooling recovery. FMS and VLT are two of Embraco’s most compact variable-speed compressors, offering the same cooling capacity as larger models while optimizing efficiency and flexibility for refrigerator manufacturers.
- Electronics: The factory will also produce inverters, the electronic component that is connected to the variable-speed compressor to regulate the compressor’s speed according to the cooling demand, which enhances energy efficiency and operational performance.
The ES and FMS compressor lines, in particular, are well-established product families recognized worldwide for their high production volumes and broad market presence.
“By establishing a footprint in India, we aim to support the domestic refrigeration sector and strengthen the local supply chain. At the same time, this facility has the potential to become our regional export hub, further reinforcing the Nidec GA leadership in the global refrigeration industry,” adds Casnati.
HVACRtrends will continue monitoring how global manufacturing shifts like this one affect availability, pricing, and product innovation for contractors and OEMs here in North America. As refrigerant transitions and energy regulations accelerate, supply chain strategy is becoming a critical part of the conversation.
