Daikin plans major push in Latin America
JAPAN: Daikin is reported to be planning three new factories in Latin America in a bid to increase sales in the region by 400% over the next five years.
Amidst predictions that air conditioning sales in Latin America are expected to jump 70% to around 800 billion yen by 2020, reports surfaced in Latin America last year of Daikin’s plans for a new factory in San Luis Potosi, Mexico, and a factory in Brazil. Then, in February this year, there were rumours in Japan of a possible purchase of an Argentinian air conditioning manufacturer.
Brazilian import duties of 14-25% on some components were said to be behind reports in the Brazilian press last year that Daikin was planning a new factory in Manaus. This is in addition to its existing Daikin McQuay factory in Mogi das Kruse. The Manaus factory is expected to initially produce around 50,000 residential and small commercial units when the facility opens in June.
Daikin is also currently building a new 35,000m² facility in San Luis Potosi, Mexico, where it already has a Daikin McQuay plant. It will shift production of core components there from its US factory in Auburn by the end of 2015.
Earlier this year reports in Japan said that Daikin had entered into negotiations to acquire an air conditioning manufacturer in Argentina as a result of Argentinian government plans to impose strict regulations to balance imports and exports.