Why we invested in Derby: Vaillant

Heating technology giant Vaillant has recently invested £40 million in a brand-new factory in Derby, which opened in March.

Here, in a Q&A, Henrik Hansen, managing director of Vaillant UK and Ireland, explains why the company decided to invest in Derby.

Hello, Henrik. Tell us a bit about your company and its products.

As a leading heating technology manufacturer and one of the area’s largest employers, we are proud of the ongoing commitment and investment in manufacturing in Derbyshire.

The Glow-worm brand has been producing its boiler products locally since 1934, expanding to include production of market-leading Vaillant boilers from the site in Belper since the early 2000s.

In 2022, we invested in the UK production of Vaillant’s award-winning aroTHERM plus air source heat pumps by adding dedicated heat pump lines to the Belper site.

Most recently, we have invested a further £40 million into a brand-new factory to manufacture our newly designed high recovery cylinders, again here in Derby, that opened its doors in March this year.

Why did the company embark on expansion and the new facility in Derby?

This investment in a purpose-built cylinder plant marks an exciting move for Vaillant as we continue to lead the transition to decarbonised homes.

The move to heat pumps in the UK requires commitment from manufacturers to invest in the UK infrastructure, build consumer confidence in the technology and generate additional jobs in the sector.

Opening the cylinder manufacturing plant in Derby was a natural progression for the company following the addition of our heat pump production lines.

As heat pump uptake increases, and even as people prepare for the switch to low carbon heating, a high recovery cylinder is vital for the effective running of the heating system.

We need a robust supply chain in place to support the growth of low carbon technology, which, alongside our already existing heat pump line, this new facility ensures we can offer.

The products being produced here in Derby are designed to help futureproof homes and make the transition to heat pumps as simple as possible.

The brand-new cylinder models are designed to improve hot water efficiency, speed up installation time and provide flexibility for installers to update homes in preparation for a heat pump now or in the future

Why did you choose Indurent Park Derby as your place to invest?

The new £40 million dedicated cylinder facility at Indurent Park is not far from Vaillant’s Belper headquarters where we manufacture our heat pumps and boilers, so the new site made perfect sense.

This project required new thinking throughout; from the product design itself to the machinery needed to produce it.

Working closely with the team at Indurent meant we were able to source and secure a site that allowed Vaillant to create a space built around our needs.

This substantial investment further demonstrates our commitment to the innovation and progression of low carbon home heating systems and generating ongoing employment opportunities in the region and the heating sector.

The purpose-built facility could see around 200 jobs created for the area in the coming years as the heat pump market continues to grow.

Some of the site’s current employees have moved from the Belper manufacturing plant to leverage the existing culture and expert skills in place across the business, while exciting new roles have also been created for those wanting to upskill and join the industry.

How supportive have the public/private sector in Derby been in terms of helping with this investment?

We have received great support throughout this expansion journey due to the recognition that the investment in low carbon technology now, can have such a positive impact on employment opportunities and skills development for the region.

We’re proud that our region is playing such a strong part in the move to upgrade home heating across the country.

Derby City Council and Marketing Derby, for instance, were among those who helped ensure this project came to fruition.

We were delighted to be able to welcome local MPs, dignitaries and many others involved in making this project a reality, to the opening of the factory in March and show the full extent of what has not only been created now but also the future possibilities it provides.

How important is it for a business to embed itself in a community? For example, Vaillant has already established links with the likes of Derby Museums and Derby College.

With such strong heritage here, we feel that Vaillant has been woven into the fabric of the area for such a long time, and we are delighted to offer our support and expertise to projects across the region that share our ambitions to maximise opportunities available to those from the area.

For example, partnering with Derby College Group, marked a first for both Vaillant and the college.

Addressing the need to attract many more apprentices into the growing low carbon field, Vaillant was delighted to be able to support the inaugural cohort of ten full-time employed Low Carbon Heating Technician Apprentices (LCHTA) accredited with the King’s Standard and based at its Derby campus.

We are well aware that the opportunity and scope of roles across the heating sector is broad, but spreading this word is so important to inspire the next generation to keep the sector moving forward.

Vaillant’s latest project with Derby Museums is testament to this, giving school children the opportunity to experience being part of an engineering project and hopefully sparking the interest and curiosity to explore a career in the sector in the future.

We are also incredibly proud to be partnering with YMCA Derbyshire which reflects a shared commitment to supporting communities, empowering young people and creating lasting, positive change in Derbyshire.

These are just a few examples of projects currently underway but, as a company, it gives a great sense of pride to know that projects like these are making a difference to the outlook and opportunity for the community we live and work in.

This has been further underlined by the sponsorship of the new performance venue.

As soon as we heard the details and the scale of the venue and what it would mean to the area, it aligned naturally with our own commitment to grow and see the area thrive.

For a long time, we have been known for helping create warm homes, now, we can be part of creating heart-warming memories with friends and family too.

Many of our employees are from or live in the surrounding region, so it is also great to be able to give back to the local area and support a venue that holds great memories, while helping to create new ones.

It is fantastic to have a local hub for people to meet and see their favourite entertainers in a space they can enjoy. There is a real buzz surrounding the venue opening and we are delighted to be involved with this.

We hope this venue goes a long way to putting Derby back on the map. It is already a very strong hub for manufacturing, but this will bring people to the area for entertainment and enjoyment, which will help benefit so many sectors in the area.

The opening line-up of acts is fantastic, and we hope this continues to grow as the venue becomes widely renowned.

It is great to know we are playing a positive role in helping the area keep moving forward and becoming bigger and better.