Daikin expands VRV production for the Middle East with the new factory in Turkey

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Dubai: The global HVAC VRV market size was valued at US$ 12.2 Bn. in 2020 and is expected to reach US$ 29.2 Bn. by 2027 at a CAGR of 11.5%. To meet the increasing demand, Daikin announced that it has invested 13 million euros to start the production of VRV systems for the Middle East at its new factory in Turkey which has been operational since May 2022. The decision is based on Daikin’s strategy to manufacture closer to the regional markets, ultimately shortening supply lead times and furthermore, enables the company to respond to demand in a flexible manner.

The EMEA (Europe, Middle East and Africa) market for HVAC-R (Heating, Ventilation, Air Conditioning and Refrigeration) systems is expected to see a strong growth over the next few years. The strong increase in demand is mainly driven by the need for sustainable solutions which are in line with changes across legislations within the region. This is particularly the case for heat pumps, which are posing to be one of the effective solutions to decarbonize buildings. Daikin is in the process of strengthening its current production capacity to ensure this growing demand can be met.

VRV systems are air conditioning appliances which can heat or cool medium to large commercial buildings. These systems use heat pump technology to allow multiple indoor units to be connected to one outdoor unit. Daikin introduced VRV systems back in 1982, as an innovative technology that enable each room of a building to be heated or cooled individually rather than the entire unit all at once, realizing considerable higher energy efficiencies. Daikin has been the leading company on VRV technology ever since, making them more energy efficient, compact, silent, and easier to install.

Tuna Gulenc, Vice President of Daikin MEA, said: “VRV is one of our key strategic business pillars within the MEA region. Over the years, and with our unique and differentiated product specs, seasonal efficiency, and system flexibility, we have secured several mega projects from residential compounds, schools, and other commercial spaces. With the additional factory closer to our region, we will be able to serve the market faster, accelerate our expansion plans, and further strengthen our VRV leadership”.

The new VRV production lines at the Turkish factory are equipped with the latest cutting-edge technology to optimize sustainability, efficiency, and quality control. The factory has also been equipped with an energy saving exhaust-heat-recovery system. With the introduction of the new facility, Daikin reinforces the company’s vision to produce high quality products for the Middle East, while reducing its environmental impact.

Hasan Önder, CEO of Daikin Turkey, added: ‘We are very proud to be able to provide high-quality and energy-efficient products to the Middle Eastern markets. The VRV market across the region is expected to grow further in the future. We will be delivering the products that meet this growing demand and are fully adapted to the needs of our climate.’

In addition, Daikin’s factory in Belgium, which has so far focused its production on VRV systems, will increase its production of heat pumps, which are rapidly gaining popularity across the region. These initiatives will enable Daikin to strengthen the manufacturing capacity across EMEA and achieve the targets of the company’s strategic management plan “FUSION 25”.

About Daikin

Air is essential to our existence. It has always been Daikin’s mission to make the air we breathe and live in the best possible. Our innovative products and solutions are designed to improve people’s health and well-being and reduce the environmental impact of heating and cooling. By 2050 Daikin aims to be carbon neutral throughout the full value chain and the full life cycle of its products and solutions.

About Daikin Industries Ltd.

Daikin Industries Ltd. based in Osaka, Japan, employs around 89,000 people worldwide and achieved sales of € 23.7 billion in financial year 2021 (1 April 21 – 31 March 22). The company is the global market leader for heat pump and air conditioning systems, as well as air filtration. Daikin Industries Ltd. is the only air conditioning manufacturer in the world that develops and produces all important components such as refrigerants, compressors, and electronics in-house. 

About Daikin Middle East and Africa

Daikin Middle East and Africa is a subsidiary of Daikin Industries Ltd., which specializes in product planning, promotion, sales, after-market service, and support for all air conditioners, heat pumps and refrigeration equipment across the Middle East and Africa region. Daikin has approximately 600 employees across its key markets within the region. Headquartered in Dubai, UAE since March 2006, Daikin MEA has worked on several large-scale projects across residential, commercial, and industrial applications. Daikin continues to make strategic investments to grow the business while also building on its robust corporate structure to give back to society by tapping into the power of technology to provide products and services designed to improve air quality and promote efficient cooling and energy consumption.