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April 10, 2008

New factory opening in China

Daikin has established a new company, Daikin Refrigeration (Suzhou) Co. to manufacture refrigeration units used in seagoing reefer container transport.

Over the last five years, our market share has grown steadily from 5% to 26%. This growth in market share, along with increased global demand has created a need for additional capacity.

To meet this extra capacity, Daikin Industries, Ltd. has established a new company, Daikin Refrigeration (Suzhou) Co., Ltd in Suzhou Industrial Park, Suzhou, China, which will manufacture the refrigeration units. Established with ¥1.39 billion capital (US$ 12.1 million), mass production is scheduled to begin in October 2008 with a capacity of approximately 40,000 units targeted for 2010.

 With the world’s container box producers concentrated in China, establishing the new 21,000 sq m reefer factory locally moves production closer to  box manufacturers and allows a rapid response to rising demand.  The location will shorten delivery times, enabling us to ship units to Shanghai in as little as 2 days and Qingdao in 5 days – an improvement on shipping times from Japan, which take 10-14 days.

The current Japanese production base in Osaka has an annual manufacturing capacity of 30,000 units. Production will be transferred gradually to the new Chinese company with the combined annual production of both bases supplying world wide markets, set to reach 70,000 units by 2010. In addition, all main parts will be produced in-house, ensuring high quality and shortening lead-time from production to product completion from 17 to 9 days.

For the past ten years Daikin have operated five production plants in China for their air conditioning division and therefore have extensive experience in producing high quality products locally. We will build on this experience to ensure that the reefer products built in China meet the same exacting standards.

In this fast-moving world market, customers rightly expect the highest quality products coupled with fast, efficient delivery and these are two areas where Daikin will continually strive to lead the market.






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