Daikin Australia has opened a new AUD 28.6 million (approx. USD 18.8 million) manufacturing facility in Chipping Norton, New South Wales, reinforcing its commitment to local production and carbon-neutral goals by 2030.
The new Factory 2 expands Daikin’s capacity to manufacture customised Air Handling Units and Rooftop Packaged Air Conditioners under its ‘local products for local markets’ strategy. The facility also creates room to scale ducted indoor unit production in response to future demand.
Construction began in early 2024 and was completed in August 2025 with support from an Investment NSW grant. The factory features autonomous mobile robots, expanded solar photovoltaic systems, and digitalised production processes aimed at improving efficiency and reducing environmental impact.
Factory 2 has already generated more than 60 full-time jobs across production, R&D, and support roles—exceeding the initial forecast of 45 positions. Daikin now employs over 700 people nationwide, including 240 within 10 km of its headquarters, and works with more than 20 local suppliers.
All ducted systems, rooftop packaged units, and air-handling units produced locally carry the Australian Made certification. These products are tailored for local conditions and largely use Australian-sourced components.
“Our decision to invest locally stems from Daikin Australia’s strong market position, our confidence in our people, technology and network,” said Hideaki Furihata, Managing Director of Daikin Australia. “This new factory strengthens our ability to meet the needs of Australian customers… while advancing our goal of carbon-neutral manufacturing by 2030.”
Daikin has also onshored printed circuit board production, and established a skills dojo to train manufacturing staff, led by experts from Daikin Japan.
Nicholas MacDonald, Manufacturing General Manager at Daikin Australia, added: “The new factory gives us room to innovate and increase our locally manufactured offering… Combining advanced automation, a strong supplier network and continuous skills development means we can respond faster to customer needs.”
