Daikin begins construction of advanced manufacturing facility in Jeddah to boost HVAC production

SAUDI ARABIA—Daikin, a leading global manufacturer of Heating, Ventilation, Air Conditioning, and Refrigeration (HVAC-R) solutions, has initiated construction on a new manufacturing plant in Jeddah, Saudi Arabia.

The project, supported by Tariq Almutlaq, Chairman of Daikin Saudi Arabia and a longtime partner, aims to localize production for key HVAC components, including chillers and hydronic heat pumps designed for sophisticated cooling requirements.

The groundbreaking ceremony took place on November 26, marking the start of a facility intended to meet growing customer demand not only in Saudi Arabia but across the wider Middle East.

This expansion reflects Daikin’s strong commitment to enhancing the kingdom’s manufacturing sector while fostering regional economic growth.

Claudio Capozio, Chief Operating Officer of Daikin Applied Europe, emphasized the importance of this facility, which will operate under the guidance of Daikin Applied Europe, a leader in advanced applied systems and industrial cooling.

He explained that the plant will follow the Production of Daikin System (PDS) Framework, ensuring customers receive products of the highest quality throughout the Middle East.

Capozio highlighted the facility’s capability to deliver consistent and durable products tailored to withstand the region’s demanding climate.

He noted that faster responses to local market needs would enable Daikin to better support and accelerate regional development.

Shinji Jodo, Managing Director of Daikin Arabia Regional Headquarters, noted that flagship projects such as NEOM and the Red Sea Development are significantly increasing demand for energy-efficient infrastructure in Saudi Arabia.

He noted that this latest initiative builds on over a decade of Daikin’s operation in the kingdom and aligns with the Saudi Vision 2030 goals, including sustainability, job creation, innovation, and industrial growth.

Additionally, it expands Daikin’s capacity to serve the broader Middle East market, preparing for future regional projects.

This new facility follows Daikin’s earlier investment in 2022 in the Sudair Industrial City near Riyadh, which showcased their efforts in technology transfer, job creation, and energy efficiency.

The Jeddah plant represents a natural next step in the company’s commitment to regional development.

The manufacturing plant will strictly adhere to the Production of Daikin System (DPS), a global standard known for operational excellence.

DPS combines lean manufacturing principles, rigorous quality control, and ongoing improvement methods to produce reliable, energy-efficient products.

The facility will also feature advanced laboratories and test benches to conduct comprehensive factory acceptance testing before shipment, ensuring product quality.

Daikin views the new Jeddah facility as a key element of its expansion strategy in the Middle East, focusing on sustainable growth, local production to meet local demand, and strengthening its market presence.

The initial production will focus on large air-cooled chillers, with plans to broaden the product range in response to evolving market requirements.

The company’s previous factories in the UAE (established in 2014) and Saudi Arabia’s Sudair Industrial City (2022) laid the groundwork for this development, making the new Jeddah plant a significant milestone in Daikin’s regional manufacturing journey.