Daikin has started building a new manufacturing facility in Jeddah, strengthening its production base in Saudi Arabia and the wider Middle East. The plant is intended to localize manufacturing of chillers and hydronic heat pumps tailored to the region’s advanced cooling needs.
Operations at the Jeddah site will be managed by Daikin Applied Europe. According to Chief Operating Officer Claudio Capozio, the facility is designed to deliver high-quality, durable systems that match the demands of the Middle East climate and allow faster response to local market requirements.
Shinji Jodo, Managing Director of Daikin Arabia and head of the regional headquarters, linked the project’s timing to strong demand from Saudi megaprojects such as NEOM and the Red Sea development. He noted that the new facility supports Saudi Vision 2030 objectives, including sustainability, innovation, job creation, and broader industrial development, while also enhancing service to neighbouring markets.
The Jeddah plant builds on Daikin’s earlier investment in Sudair Industrial City near Riyadh, which focused on technology transfer, local employment, and energy efficiency. It adds further capacity to support the region’s expanding construction and infrastructure pipeline.
The facility will follow the Production of Daikin System (PDS), the company’s global standard for manufacturing excellence. This approach combines lean production, strict quality control, and continuous improvement, supported by advanced laboratories and dedicated test benches to conduct full factory acceptance testing before shipment.
As part of Daikin’s phased expansion in the region — following its UAE factory launched in 2014 and its Saudi facility opened in 2022 — the Jeddah site will initially produce large air-cooled chillers. Additional product lines are planned as demand and market needs evolve, reinforcing Daikin’s long-term commitment to the Middle East cooling sector.
