CHINA: Daikin is to spend JPY31.5bn ($230m) on a new domestic air conditioning factory in Huizhou City, Guangdong Province and starts building a further R&D centre in Suzhou.
The new factory is expected to come online in October 2024 and will supplement production from its 129,000m2 Daikin Air Conditioning (Shanghai) factory in Suzhou City, Jiangsu Province. It will be built on land adjacent to an existing Daikin central air conditioning factory on the Taimei Industrial Park.
The decision is reported to be in response to strong demand in China and to secure a stable supply system after the lockdowns in Shanghai in April and May impacted production.
The new business will operate as Daikin Air Conditioning (Huizhou) Co Ltd, a wholly-owned subsidiary of Daikin (China) Investment Co.
Suzhou R&D centre
Daikin has also announced the construction of a new R&D centre in Suzhou. Construction of the building is scheduled to begin in September and be completed in the first half of 2024.
At present, the Suzhou factory is the largest production base of Daikin Group, with more than 6,000 employees and an annual output value exceeding $1.7bn.