Daikin expands ME VRV production with new factory 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.
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”.
SAER pumps says reliability is key to winning customer trust in time of COVID-19
DUBAI, UAE, 10, January 2021: Reliability has been crucial for SAER Elettropompe, in terms of maintaining customer relations in the time of COVID-19, Ilaria Favella, the company’s Marketing and Sales representative, said, adding that the decision to keep the production in Italy rather than move it to other countries has played a fundamental role in the company’s ability to strengthen its position in the UAE. “We are giving continuity to our customers and providing a winning, high-quality solution to those who are looking for a supplier in these difficult moments,” she said. “This situation has given us the opportunity to increase customers’ trust.” Favella added that thanks to the Italian production and available stock, Saer has been able to keep the scheduled lead time, as well as win contracts where a short delivery time was required, even during the first phases of the pandemic.
Favella said that SAER has continued to maintain strong links with the GCC region, adding that it was the first market to be developed when the company started exporting from Italy over 50 years ago. Favella said the range of products that is more well-known from the company includes end suction, split casing, high pressure and in-line pumps, as well as submersible pumps and motors,, and applications in the civil, agricultural and industrial fields as well. She added that the company is also positioning itself to address evolving demand for water, which is a critical resource, pointing out that desalination is becoming an important alternative to traditional freshwater resources.
Sustainable solutions, digitalisation are the way ahead
As the new BASF Vice President for operations in the Middle East, could you take us through the roadmap of the company?
BASF is an active partner in the industry in the UAE. We have been present in the region for over a century, and our office in the UAE dates back to the 1970s. You can, therefore, say that we are deeply rooted in the region. In addition to our regional headquarters in Dubai, we have offices in Abu Dhabi, Al Khobar and Cairo. In the UAE, we operate a state-of-the-art polyurethane system house in Dubai Industrial City and a production facility for construction chemicals in Dubai Investment Park. Our construction chemicals business also has sites in Saudi Arabia, Jordan and Egypt. In Bahrain, we operate a production facility for customised plastic additives. We have always aligned our business with the strategic vision and economic agenda of the governments in the region. What the visions have in common is not only a strong drive towards growth and economic diversification but also the realisation that having a commitment to sustainability is key to achieving long-term growth. We see unprecedented opportunities in various sectors to support these national priorities, and hence, we share our knowledge and expertise. After all, our commitment to sustainable solutions is anchored in the corporate purpose of BASF, which is to create a sustainable future.
To what extent is BASF reinforcing its commitment to sustainability, innovation and digitalisation, while also expanding its footprint across the region?
Our new strategy, which we presented in November 2018, aims at profit and a CO2-neutral growth. This means that we will decouple our greenhouse gas emissions from organic growth. To achieve this, we will improve the management, efficiency and integration of our manufacturing sites, and wherever possible, we plan on purchasing a greater share of electricity from renewable energy sources. We have already reduced emissions by 50% in absolute terms, compared to 1990 levels, while doubling our production in this period. In addition, we are working closely with a number of relevant stakeholders to drive sustainable water action and have been awarded a top ‘A’ rating by the international organisation, CDP, formerly the Carbon Disclosure Project. We also want to grow our share of so-called ‘accelerator’ products, including in the Middle East. Across all customer industries, we have identified 13,000 accelerator solutions. These are products that have made a substantial contribution to making the value chain more sustainable. An example of an accelerator product that is performing very well in this region is Neopor, an insulation material that offers improved insulation performance and contributes to climate protection and energy efficiency. Another example is Elastocool, a system made for the insulation of fridges and freezers. The material has a low-thermal conductivity by approximately 0.5 mW/mK, which enables the achievement of energy classes A++ and A+++. The fast cycling time leads to higher output in production, while high compressive strength values lead to lower material consumption per unit. In addition, digital solutions are helping us achieve our sustainability-related goals. Digitalisation presents opportunities, and by using digital technologies and data, we are able to create additional value for our customers and increase efficiency along with the effectiveness of our process. Digitalisation makes our business smoother and eventually makes it cheaper.
You mentioned that there is a strong drive towards localised, advanced manufacturing. What are the challenges you foresee, and how do you plan on tackling them?
When we look at Egypt, a key market in our region, we are increasingly serving local customers, whereas, in the past, a large part of our customer base was multinationals with a presence in Egypt. Other countries in the region, including countries in the Gulf, are also moving in a similar direction. Therefore, I see opportunities for BASF, rather than challenges. One driving factor will be localisation. We are already producing locally and will expand this in the future with the mixing, blending and packaging of materials. Local storage is also becoming increasingly important.