Hanon Systems announced its automotive compressor plant in Palmela, Portugal, has surpassed a milestone production level of more than 500,000 electric compressors (eCompressors) designed specifically for use with R744, an environmentally friendly refrigerant. The Palmela plant is located in the Setúbal District, about 25 kilometers (16 miles) south of Lisbon, the capital city of Portugal. It opened in 1998 producing mechanical scroll compressors and production of its first eCompressor began in 2009.

In 2018, the plant expanded with a new two-story construction adding approximately 10,000 square meters (108,000 square feet) of space and increasing the annual production capacity to support the industry's migration toward e mobility and address the demand for eCompressors. High volume manufacturing of the R744 eCompressor began at the Palmela plant in late-2019. R744 is an environmentally-friendly alternative to traditional refrigerants with a global warming potential (GWP) of one.

Often referred to as carbon dioxide or CO2, R744 is preferred by certain automakers, primarily in Europe, for its improved heating performance in heat pump systems, which is quickly becoming mainstream technology in battery electric vehicle (BEV) applications. Hanon Systems has decades of experience developing thermal solutions that operate with various refrigerants. Aside from R744 solutions, others include R290 (also known as propane), and traditional refrigerants such as R134a and R1234yf.