Kingdom of Saudi Arabia, 27 November 2025 – Daikin, a global leader in Heating, Ventilation, Air Conditioning and Refrigeration (HVAC-R), has officially commenced construction of a new manufacturing facility in Jeddah. The project is being delivered with the support of the company’s long-term partner and Chairman of Daikin Saudi Arabia, Mr Tariq Almutlaq.
Following the groundbreaking ceremony held on 26 November, the new Jeddah facility will focus on the localized production of chillers and hydronic heat pumps, designed to meet the advanced cooling requirements of customers across Saudi Arabia and the wider Middle East.
By increasing local manufacturing capability, the facility supports the Kingdom’s Vision 2030 goals, strengthening industrial growth, boosting regional supply chains, and enabling more energy-efficient infrastructure across major development programmes.
“With operations overseen by Daikin Applied Europe, a leader in advanced applied systems and industrial cooling, and using the Production of Daikin System Framework, this new facility will ensure customers across the Middle East receive the highest-quality solutions,” said Claudio Capozio, Chief Operating Officer, Daikin Applied Europe.
He added: “The facility will allow us to deliver durable, high-performing products specifically engineered for the demanding regional climate. With faster response times and enhanced production capability, we are well positioned to support long-term growth across the region.”
The Kingdom’s flagship developments, including NEOM and the Red Sea Project, are driving unprecedented demand for energy-efficient, technologically advanced cooling solutions.
“With more than a decade of operations in Saudi Arabia, this strategic investment builds on Daikin’s strong regional presence and long-standing partnerships,” said Shinji Jodo, Managing Director, Daikin Arabia Regional Headquarters. “It directly supports Vision 2030 objectives around sustainability, job creation, innovation, and industrial diversification. It also enhances our capacity to serve the wider Middle East and lays the foundation for future regional initiatives.”
The new facility follows Daikin’s 2022 investment in the Sudair Industrial City site near Riyadh, which demonstrated the company’s continued commitment to technology transfer, local employment, and energy-efficient solutions. The Jeddah facility represents the next chapter in this progression, aligning with broader national and regional development ambitions.
The new site will fully implement the Production of Daikin System (PDS) – a globally recognised framework for manufacturing excellence. PDS integrates lean production, strict quality assurance, and continuous improvement processes to ensure reliability, consistency, and energy efficiency across the entire product range.
The facility will also feature advanced laboratories and dedicated test benches for comprehensive Factory Acceptance Testing (FAT), ensuring every unit undergoes rigorous assessment before delivery.
The Jeddah plant forms a key part of Daikin’s long-term growth plan for the Middle East, supporting:
Sustainable expansion
Local production for local consumption
Increased manufacturing resilience
Deeper regional market presence
Production will begin with large air-cooled chillers, with further product lines planned as demand evolves.
Following the establishment of Daikin’s UAE facility in 2014 and the KSA facility in 2022, this new development marks another significant milestone in the company’s structured expansion across the region.