USA: Japanese air conditioning manufacturer Daikin has announced it will build a $230m manufacturing facility in Mexico.
The 761,000ft2 (71,000m2) facility for its Daikin Comfort Technologies North America business is expected to be fully operational in 2024. Daikin Comfort Technologies is the company’s ductless and light commercial and VRV products organisation in North America.
According to Daikin, the estimated $230m investment is a response to increasing demand for its products in North America and Latin America, which include the Daikin, Goodman, and Amana brands.
“In order to meet the increased demand for our technologies and products throughout North America and Latin America, and from a business continuity standpoint, it is absolutely necessary to expand our manufacturing presence into Mexico,” said Daikin Comfort Technologies North America president and CEO Satoru Akama.
Daikin says the new facility – the location of which has not been revealed – will provide localised production for its mini-split and Daikin FIT residential inverter products that are currently imported from manufacturing sites in Asia.
Daikin has already expanded its manufacturing presence into Mexico, migrating the production of some modular blower product lines to its 200,000ft2 (18,580m2) repurposed facility in San Luis Potosi. That facility will supplement production at Daikin’s Texas Technology Park (DTTP) with five product lines once fully operational in 2023.
“It is vital to integrate production at a local level to efficiently maintain our high standards to deliver quality service to our customers,” Akama said. “It also underscores our belief in adding manufacturing capacity where our products are bought, sold and used.”
A vast majority of manufacturing operations will remain at the 4.3 million ft2 campus in Dallas, where production volume, scale and workforce headcount will not be impacted by the new sites, says Daikin.
“Daikin Texas Technology Park will continue to be the centre of our operations and forefront of Daikin’s innovation in North America,” Akama said. “Our presence in Mexico will be a wonderful complement to the tremendous achievements and continued growth in manufacturing operations at DTTP.”
DTTP, which has served as the company’s North American headquarters since 2017, currently employs a workforce of close to 10,000 and continues to actively recruit new team members. Production at DTTP is on pace to eclipse manufacturing records set in FY21.
Demand for Daikin, Goodman, and Amana brand products has increased significantly across more than 80 locations and 20 states in the last 21 months through the acquisition of Stevens Equipment Supply, ABCO HVACR Supply + Solutions, Robinson Plumbing & Heating Supply Co, Thermal Supply Inc, AirReps and CCOM Group.
Daikin has also expanded operations in the Greater Houston region in recent years. In 2020, it added 62,000ft2 (5,760m2) of office space and common areas at DTTP. Last year, the company signed a 494,800ft2 (45,968m2) lease in northwest Houston to supplement distribution and logistics operations. Daikin has since built out that site, which now serves as a parts distribution centre.