Japanese multinational air conditioning manufacturing company Daikin Industries announced its plan to spend approximately $711 million, including its investment and merge and acquisition (M&A) plans, over the next four years in Southeast Asia and India to produce core components and smaller air conditioners.
The firm hopes to capitalise on the rising demand in local markets and solidify its position as the leader in the region.
According to Nikkei Asia, Daikin Industries’ proposed M&A and other investments in Southeast Asia and India through fiscal year 2025 represent a 60 per cent increase over the previous four-year period's expenditures, including $220 million on a new factory in a Jakarta suburb in Indonesia.
When fully operational in 2024, the factory would produce 1.5 million home air conditioners annually and provide employment for almost 2,000 people.
The company also targets to expand its footprint in India by to increase investment at a currently under-construction facility here. Moreover, a new building to manufacture high-capacity compressors for large air conditioners is also under implementation as early as 2024.
More money will be poured into improving already existent infrastructure in countries like Vietnam, Nikkei Asia reported. Daikin plans to expand its manufacturing capabilities, both in terms of raw materials and completed goods.
Daikin controls the biggest shares in India, Indonesia and Vietnam, and sees air conditioner sales in Asia and Oceania climbing 26 per cent in the fiscal year.
The Daikin Vietnam plant, which is 210,000 square metres, was constructed and put into operation in May 2018 in the Thang Long II Industrial Park in Hung Yen province with an investment capital of more than $72 million.
One air conditioner is completed every 25 seconds at the Daikin Vietnam facility.
Since its founding in Osaka in 1924, Daikin has expanded business focused primarily on air conditioning to over 160 countries, including Vietnam.
Aiming to help solve social and community problems and grow business, Daikin strives to meet expectations and maintain trust worldwide as a global company that supports human health and comfort while creating new value for air and the environment.
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