Daikin has commenced construction of a new manufacturing facility in Jeddah to produce chillers and hydronic heat pumps for the local market and wider region.
With operations overseen by Daikin Applied Europe, the facility will provide customers across the wider Middle East region with locally made products and solutions.
Daikin Applied Europe chief operating officer, Claudio Capozio, said the facility will enable Daikin to produce solutions tailored to the region’s demanding climate.
“The facility will enable us to respond to local market requirements faster, helping us to power growth across the Middle East,” Capozio added.
The managing director of Daikin Arabia regional headquarters, Shinji Jodo, said the Kingdom of Saudi Arabia’s flagship projects, including NEOM and the Red Sea development, are driving unprecedented demand for energy-efficient infrastructure.
He said Daikin has been operating in the Kingdom for more than a decade supporting Vision 2030 priorities such as sustainability, job creation, innovation, and industrial growth.
“It also strengthens our capacity to serve the wider Middle East, laying the groundwork for future regional initiatives,” he said.
The new Jeddah facility follows an earlier investment by Daikin. In 2022 Daikin invested in the Sudair Industrial City facility near Riyadh.
The new facility will also include advanced laboratories and dedicated test benches, allowing comprehensive factory acceptance testing (FAT) to guarantee the quality of every unit before delivery.
Daikin is ramping up operations in the region and first began investing back in 2014 with the establishment of a UAE factory.
Initially, the new factory will produce Daikin’s large, air-cooled chillers, before expanding production down the track to cover other products.
The Daikin Europe Group covers Europe, the Middle East, and Africa with 15 manufacturing sites in Europe (12), Turkey (1) and the Middle East (2).