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Region: UAE

Daikin expands ME VRV production with new factory in Turkey

Company said it has invested 13 million euros to start the production of VRV systems in Turkey


DUBAI, UAE, 1 August 2022: The global HVAC VRV market size was valued at USD 12.2 billion in 2020 and is expected to reach USD 29.2 billion by 2027 at a CAGR of 11.5%. To meet the increasing demand, Daikin announced that it has invested 13 million euros to start the production of VRV systems for the Middle East at its new factory in Turkey, which has been operational since May 2022. Making the announcement through a Press release, Daikin said the decision is based on its strategy to manufacture closer to the regional markets, ultimately shortening supply lead times and, furthermore, enabling it to respond to demand in a flexible manner.

Tuna Gulenc

The EMEA (Europe, Middle East and Africa) market for HVAC-R (Heating, Ventilation, Air Conditioning and Refrigeration) systems is expected to see a strong growth over the next few years, Daikin said. The strong increase in demand is mainly driven by the need for sustainable solutions, which are in line with changes across legislations within the region, Daikin said. This is particularly the case for heat pumps, which are posing to be one of the effective solutions to decarbonise buildings, Daikin said, adding that it is in the process of strengthening its current production capacity to ensure this growing demand can be met.

VRV systems are air conditioning appliances, which can heat or cool medium to large commercial buildings, Daikin said. These systems use heat pump technology to allow multiple indoor units to be connected to one outdoor unit, Daikin said.

The company said it introduced VRV systems back in 1982, as an innovative technology that enables each room of a building to be heated or cooled individually rather than the entire unit all at once, realising considerably higher energy efficiencies.

Tuna Gulenc, Vice President of Daikin MEA, said: “VRV is one of our key strategic business pillars within the MEA region. Over the years, and with our unique and differentiated product specs, seasonal efficiency, and system flexibility, we have secured several mega projects from residential compounds, schools and other commercial spaces. With the additional factory closer to our region, we will be able to serve the market faster, accelerate our expansion plans, and further strengthen our VRV leadership.”

According to Daikin, the new VRV production lines at the Turkish factory are equipped with the latest cutting-edge technology to optimise sustainability, efficiency and quality control. The factory has also been equipped with an energy-saving exhaust-heat-recovery system, Daikin said. With the introduction of the new facility, Daikin said it reinforces the company’s vision to produce high-quality products for the Middle East, while reducing its environmental impact.

Hasan Önder, CEO, Daikin Turkey, added: “We are very proud to be able to provide high-quality and energy-efficient products to the Middle Eastern markets. The VRV market across the region is expected to grow further in the future. We will be delivering the products that meet this growing demand and are fully adapted to the needs of our climate.”

In addition, Daikin said, its factory in Belgium, which has so far focused its production on VRV systems, will increase its production of heat pumps, which are rapidly gaining popularity across the region. These initiatives, the company said, will enable it to strengthen the manufacturing capacity across EMEA and achieve the targets of the company’s strategic management plan “FUSION 25”.

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