Daikin Makes New Investment

Daikin Europe N.V. is making a new investment to expand the German heat pump manufacturing hub in Günglingen, Germany. By investing in local production capacity to meet growing demand for heat pumps in Europe, the investment by Daikin Europe is part of the strategic management plan created for 2025 and will also provide employment for 500 people. With this latest investment, Daikin Europe's planned investments in the EMEA region between 2020 and 2025 have reached EUR 1.2 billion to date. Daikin Manufacturing Germany GmbH, which has consistently increased heat pump production in recent years, has made a new investment to expand the German heat pump manufacturing hub in Günglingen, Germany. The company purchased a 22,000 square metre plot of land adjacent to its production and office facilities in Günglingen for this investment, which will accelerate the expansion of production capacity in Germany. The company will provide employment for an additional 500 people through this investment, which will realise its growth plans. Filip De Graeve, General Manager of Daikin Manufacturing Germany GmbH and Daikin Airconditioning Germany GmbH, commented on the new investment: "The expansion of our facility will enable us to provide a steady supply for a rapidly growing market."

Proximity-to-market strategy

Daikin, which follows the principle of manufacturing in locations close to the markets it serves, is making investments in several locations to increase its share in the expanding European market for this purpose. The company designs and manufactures residential-type hydronic heat pumps sold in Europe entirely in Europe. The new investment in the German factory is seen as an extension of Daikin's proximity-to-market strategy. Hiromitsu Iwasaki, Vice President of Daikin Europe N.V., said: "Daikin is the only manufacturer in the world that designs and produces heating, cooling and refrigeration equipment as well as compressors and refrigerants used in these technologies globally. Over our approximately 100-year history, we have developed high levels of technological expertise in heat pump technologies. This investment in our German factory will create additional capacity that will enable us to deliver more premium-grade heat pumps to the European market on time," emphasising the importance of the matter.

Annual demand for residential-type heat pumps is expected to triple by 2025. Martin Dieryckx, General Manager of Daikin Europe N.V.'s Environmental Research Centre, made the following comments on the matter:

"Heat pumps play an important role in decarbonising our homes and workplaces. As a global leader in the design and manufacture of heat pumps, we are well positioned to support this transition, which is of major importance to Europe's future, and to create the necessary production capacity." The new investment in Germany follows similar investments related to the expansion of the heat pump factory in Belgium and the construction of a new heat pump factory in Poland. Daikin Europe had previously announced that it would increase R&D activities as the new EMEA Development Centre in Ghent, Belgium becomes Daikin's global centre for heat pumps. The renovation of the facilities and their integration into the existing production site, together with the expansion of the German factory, will enable production of more than three times its current output by 2025. With this latest investment, the total of Daikin Europe's investments in the EMEA region between 2020 and 2025 has reached EUR 1.2 billion.