Daikin sets up joint venture in Saudi Arabia
BELGIUM: Daikin Europe has established a joint venture subsidiary In Saudi Arabia.
Appropriately named Daikin Air Conditioning Saudi Arabia, the new company pairs Daikin with RIRAC, itself a joint Saudi company made up of Rajhi Holdings and Al Mutlaq Group.
Based in Riyadh, the new company will provide sales and after-service on the full line up of Daikin products from residential air conditioning to large scale applied equipment.
It gives Daikin a much greater presence in the region and it aims to achieve a market share of 10% by 2015 and around 20% by 2018.
Daikin Europe NV holds a 75% stake in the joint venture
The Saudi Arabian economy witnessed GDP growth of 6.8% in 2012. Government sponsored major urban development projects are increasing the demand for air conditioning and residential air conditioning is also growing, if not at the same rate. The hvac market is predicted to grow to around US$1.4bn by 2015.