Daikin Australia has invested $28.6 million in a second manufacturing facility in Sydney.
The new factory expands Daikin’s capability to produce customised Air Handling Units and Rooftop Packaged Air Conditioners.
The investment is part of the company’s global ‘local products for local markets’ strategy, while also providing the potential to expand ducted indoor production to cater to future demand increases.
Daikin Australia managing director, Hideaki Furihata, said the expansion reflects confidence in Australia’s market strength and skilled workforce.
“Our decision to invest locally stems from Daikin Australia’s strong market position, our confidence in our people, technology and network, and our plans to broaden our range of locally designed and produced products,” Furihata said.
“This new factory strengthens our ability to meet the needs of Australian customers with products that are designed, engineered and built here, while advancing our goal of carbon-neutral manufacturing by 2030.”
Construction began in early 2024 and concluded in August 2025, with support from a grant through Investment NSW, recognising Daikin’s role in creating highly skilled manufacturing jobs in Western Sydney.
The factory incorporates autonomous mobile robots, expanded solar photovoltaic generation and digitalised sale-to-manufacture processing to improve efficiency and reduce environmental impact.
Beyond the new factory, Daikin has brought printed circuit board manufacturing onshore, achieved Australian Made certification for most locally built products and established a skills dojo led by Daikin Japan-trained experts to develop its manufacturing talent.
All ducted systems, rooftop packaged units and air-handling units produced in Australia carry the Australian Made mark.
Designed for local conditions, these products draw much of their value from Australian-sourced parts and assembly, supporting local suppliers and ensuring faster service and spare-part availability.
Initially expected to create 45 roles, the factory has already delivered over 60 full-time jobs across production, research and development and support functions.
Daikin now employs more than 700 people nationwide, including 240 who live within 10 kilometres of its Chipping Norton headquarters.
Daikin works with over 20 local suppliers, and that network is set to expand as demand grows.
Daikin Australia general manager for manufacturing, Nicholas MacDonald, said the factory positions the company for long-term growth.
“The new factory gives us room to innovate and increase our locally manufactured offering in key residential and commercial segments,” MacDonald said.
“Combining advanced automation, a strong supplier network and continuous skills development means we can respond faster to customer needs and keep manufacturing strength here in Australia.”
The factory also enables the company to further grow its production capacity and technical capability in the years ahead.
Daikin also invests heavily in local R&D, warehousing and training operations.