Daikin has begun construction of a new manufacturing facility in Jeddah, Saudi Arabia, focused on producing chillers and hydronic heat pumps for regional markets. The project is supported by Daikin’s long-term partner and Chairman of Daikin Saudi Arabia, Mr. Tariq Almutlaq.
The new facility, officially launched with a groundbreaking ceremony on 26 November 2025, aims to meet increasing demand for advanced cooling solutions in the Kingdom and the broader Middle East. The production will be managed by Daikin Applied Europe and follow the company’s global Production of Daikin System (PDS) standards, which emphasize lean manufacturing, quality control, and energy efficiency.
According to Claudio Capozio, Chief Operating Officer of Daikin Applied Europe, the facility will enhance responsiveness to market needs while ensuring consistency, durability, and high performance for products suited to the region’s climate.
The investment aligns with Saudi Arabia’s Vision 2030 goals, supporting sustainability, industrial growth, and job creation. Shinji Jodo, Managing Director of Daikin Arabia Regional Headquarters, highlighted the role of major national projects like NEOM and the Red Sea development in driving demand for energy-efficient infrastructure.
This development follows Daikin’s previous investments in the region, including the UAE Factory in 2014 and the KSA Factory in Sudair Industrial City in 2022. The Jeddah plant will initially produce large air-cooled chillers, with future portfolio expansion planned based on market demand.
The facility will also include laboratories and test benches for comprehensive factory acceptance testing (FAT) to ensure product quality before delivery.
