Daikin to open new manufacturing facility in Saudi Arabia

Daikin new manufacturing facility in Saudi Arabia
Image Credits: Daikin | Cropped by GBN
By Shilpa Annie Joseph, Sr. Content Head
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Daikin has started building a new manufacturing facility in Jeddah, with support of their long-term partner and Chairman of Daikin Saudi Arabia, Tariq Almutlaq.

Daikin is a leading manufacturer of Heating, Ventilation, Air Conditioning and Refrigeration (HVAC-R) solutions.

Commitment to Quality and Regional Growth

The new facility will focus on the localized production of chillers and hydronic heat pumps for advanced cooling needs. The facility will cater to meet the requirements of regional customers in the Kingdom and the wider region, emphasizing the company’s commitment to strengthening Saudi Arabia’s manufacturing sector and supporting regional growth.

Claudio Capozio, Chief Operating Officer, Daikin Applied Europe, stated that, “With operations overseen by Daikin Applied Europe, a market leader in advanced applied systems and industrial cooling, and the Production of Daikin System (PDS) Framework, our new manufacturing facility will ensure that customers across the wider Middle East region receive products and solutions of the highest quality.”

“Delivering tangible benefits, including consistency, durability and improved performance of products 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.

Adherence to Production of Daikin System Standards

The new manufacturing facility will fully adhere to the Production of Daikin System (PDS), a globally recognized standard for manufacturing excellence. PDS integrates lean production principles, stringent quality management, and continuous improvement practices to ensure products are both reliable and energy efficient.

The 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.

Part of Daikin’s Middle East Growth Strategy

The new facility is part of its strategic growth plan for the Middle East region, which emphasizes sustainable expansion, local production for local consumption, and deeper market penetration.

The facility is anticipated to be a new milestone as part of a structured ramp-up of operations in the region, after the establishment of UAE Factory in 2014, KSA Factory in 2022 and now the new factory, shall begin with the production of the company’s large, air-cooled chillers, and the portfolio to be expanded later in line with evolving market needs.

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