Daikin to open a new manufacturing facility in Jeddah to drive regional growth
Daikin a leading manufacturer of Heating, Ventilation, Air Conditioning & Refrigeration (HVAC-R) solutions, has started building a new manufacturing facility in Jeddah, with support of their long-term partner and Chairman of Daikin Saudi Arabia, Mr. Tariq Almutlaq.
With groundbreaking celebrated on 26 November, 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 Daikin’s commitment to strengthening Saudi Arabia’s manufacturing sector and supporting regional growth.
“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,” said Claudio Capozio, Chief Operating Officer, Daikin Applied Europe. “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,” Mr. Capozio added.
“The Kingdom of Saudi Arabia’s flagship projects, including NEOM and the Red Sea development, are driving unprecedented demand for energy-efficient infrastructure. With over a decade of presence in the Kingdom, this strategic initiative builds on Daikin’s established partnerships and operations, supporting Vision 2030 priorities such as sustainability, job creation, innovation, and industrial growth. It also strengthens our capacity to serve the wider Middle East, laying the groundwork for future regional initiatives,” said, Shinji Jodo, Managing Director, Daikin Arabia Regional Headquarter.
Building on Daikin’s earlier investment in 2022, in the Sudair Industrial City facility near Riyadh, which demonstrated the company’s contribution to technology transfer, local employment, and energy-efficiency, the new Jeddah facility represents a natural progression of this commitment, aligning with the region’s broader development agenda.
The new manufacturing facility will fully adhere to the Production of Daikin System (DPS), a globally recognized standard for manufacturing excellence. DPS 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.
The new facility is part of Daikin’s 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 Daikin’s large, air-cooled chillers, and the portfolio to be expanded later in line with evolving market needs.
