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”.
UL Solutions is BridgeBuilding Partner of 2022 Eurovent Summit
BRUSSELS, CARUGATE, 19 July 2022: UL Solutions has become an official BridgeBuilding Partner (sponsor) of the 2022 Eurovent Summit, scheduled to take place from October 25 to 28 in Antalya, Turkey, Eurovent said through a Press release.
According to Eurovent, UL Solutions delivers testing, inspection and certification services, together with software products and advisory offerings that support customers’ product innovation and business growth.
Eurovent said UL Solutions will assume an active role in the Summit’s flagship event, Eurovent Innovation/HUB, focused on #BuildingBridges between innovation and sustainability. Dustin Steward, Director and Global Industry Lead for Appliances, HVAC, and Components, UL Solutions, will contribute to the event with a keynote speech dedicated to lower-GWP refrigerants, Eurovent said.
Steward said: “While low-GWP refrigerants are more environmentally friendly, manufacturers must be mindful of the additional layers of risk involved in their use. As a leading independent safety science organisation, UL Solutions has conducted extensive research on flammable refrigerants and has developed thorough expertise to support manufacturers during the design of their next-generation products.
“Among UL’s available services, in fact, there is the unique Modelling and Simulation programme that helps us to predict flammable refrigerant behaviour in circuits and potentially critical areas. Through this advanced analysis, manufacturers can lower the number of physical prototypes needed for certification tests. On top of that, a faster assessment of product design revisions meets both environmental and process acceleration issues that manufacturers committed to sustainability are pursuing.”
According to Eurovent, this year’s EUROVENTSUMMIT is co-organised with ISKID, the Turkish Air Conditioning and Refrigeration Manufacturers’ Association. It aims at #BuildingBridges between manufacturers and consultants, planners, installers, trade associations and policymakers between Europe, the East and beyond, towards more sustainable and circular products and a more socially and environmentally responsible industry, Eurovent said.
Among other activities, participants can look forward to a rich seminar programme focused on both ventilation and refrigeration, organised by ISKID and TTMD (Turkish Society of HVAC and Sanitary Engineers), with involvement from UL Solutions in English and Turkish, Eurovent said. There will also be an interactive policy panel on the first night, Eurovent said, which will connect many different stakeholders in the industry.
Carel signs agreement to acquire 51% of CFM Soğutma
BRUGINE, Padua, Italy, 10 May 2021: Carel Industries, on May 5, signed a binding agreement for the acquisition of 51% of CFM Soğutma ve Otomasyon A.Ş., a long-standing distributor and partner in Turkey as well as a provider of digital and on-field services and solutions dedicated to OEMs, contractors and end users in the Turkish HVACR market.
CFM’s workforce, based in its 6,500-square-metre Izmir facility, in Turkey, numbers 34, half of whom are part of the technical and engineering team, Carel said.
With major expertise in thermodynamics, mechanics, control and connectivity, CFM offers complete solutions, starting from system design and technical support, during the start-up phase of the plants, up to the remote monitoring and supervision service, Carel said. The offer, which is based on the proposal of the best brands and includes software development and customisation, customer training in its Academy as well as energy management services, allows CFM to stand out significantly, Carel said.
According to Carel, CFM has created a unique business model, demonstrated by its high rate of customer loyalty, its long-standing relationships with the country’s main retail chains and its particularly high profitability.
A peculiar feature of CFM is also that it invoices almost all its sales in euros, thereby protecting itself from fluctuations in the local currency, Carel pointed out. In 2020, CFM reported revenues of 14.5 million euros and EBITDA of five million euros, it said. It is expected that at the time of the closing of the operation the net financial position will be slightly positive, it pointed out.
Carel said the transaction is aligned with two of its key strategic directions: geographical expansion outside western Europe and the development of the services business – on-field and digital. The acquisition, the company said, will allow it to not only establish a direct presence in the important Turkish market and to have a solid platform for the development of its Middle East market but also to adopt a distinctive business model, characterised by a wide range of complementary services. The transaction will also allow it to further develop its potential in synergy with its hardware, IoT and thermodynamic competence, it said. After having established its success in the refrigeration sector, CFM, in fact, has extensive growth potential in air conditioning and humidification, it added.
The closing of the part-acquisition is expected by the end of July 2021 and is subject to obtaining the approval for the transaction from the local antitrust authorities, and meeting other conditions precedent that are characteristic of this type of agreement, Carel said. With this transaction, Carel said, it will take control of the Turkish company through the acquisition of 51% of the share capital of CFM, with an enterprise value of 23.1 million euros for the stake. The acquisition of the remaining 49% of CFM, the valuation of which is tied to the Turkish company’s future results, is governed by a cross-option mechanism between the parties, exercisable between 2024 and 2027, Carel said. This structure in which the current management is heavily involved in the company in the medium term, it added, ensures a complete alignment of interests during the integration period of CFM into CAREL.