Daikin Looks at Growth in MEA Through Sustainability, Localization

Daikin Looks at Growth in MEA Through Sustainability, Localization

/ Technology & Smart Cities / Friday, 28 October 2022 11:40

Daikin Industries, Ltd., the leading global manufacturer of heating, ventilation, air conditioning and refrigeration (HVAC-R) solutions, is looking for expansion across the Middle East and Africa (MEA) in line with its Fusion25 five-year growth plan. Daikin is focusing on sustainability and localization across residential, commercial and industrial applications as it supplies the region’s leading hotels, malls, commercial buildings, residential compounds and stadiums with innovative and sustainable solutions.

After setting up its MEA HQ in Dubai a decade ago, Daikin now has entities in KSA, Egypt and Qatar; sales offices in Nigeria and Morocco with 600 employees covering the region; and a sales network of more than 100 independent distributors.

As part of its localization drive, Daikin recently opened its second regional manufacturing facility after Jebel Ali, Dubai, and its first factory in the Kingdom of Saudi Arabia. Located in Sudair Industrial City, 150 km from Riyadh, the custom-built premises are designed to enable Daikin to better serve the local market with its latest technologies and innovations. At the same time, the new facility will support national energy efficiency and sustainability goals, create vital job opportunities and support the Kingdom’s economic growth. The opening of the new facility also marks the company’s tenth year of operations in the Kingdom.

Meanwhile, in Africa, the company has opened its first training center in Nigeria, which is focused on providing wide-ranging training programs for the local workforce. Developed in partnership with the Lagos-based technical vocational training institution Etiwa Tech, the new center is part of Daikin’s aim to build a cleaner environment in the African region by appointing new channel partners and establishing more training centers.

“At Daikin Middle East and Africa, we are committed to fuelling local economies, empowering local talent and investing in, supporting and facilitating initiatives that support carbon emissions reductions as we expand our regional footprint," said Tuna Gulenc, VP of Daikin Middle East and Africa.

“With over 80% of our net sales coming from outside of Japan, the high-growth markets of MEA are critical to realizing our strategic growth plans as outlined in Fusion 25. These markets will remain a priority as we continue to introduce our state-of-the-art energy-efficient products. Designed for the region, Daikin products and solutions support the comfort, health and well-being of both our customers and the planet,” Gulenc added. 

Consistent with the net zero ambitions of regional governments, Daikin plans to achieve a 30% reduction in net greenhouse gases by 2025 and carbon neutrality by 2050, according to its Environmental Vision.

As of 2021, Daikin achieved a 10% reduction rate of net greenhouse gases, demonstrating that the company is on track to achieve its targets. To support its environmental goals, in June of this year, the company launched a new solar plant at its headquarters in Dubai, which will help Daikin reduce its carbon emissions by over 300 tonnes annually, in line with Dubai’s Carbon Abatement Strategy 2030.

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