Daikin Launches Massive Air Conditioner Production Base in South China
Huizhou, Guangdong province - October 9, 2024
A grand ceremony marked the beginning of a massive air conditioner production base by Japan's Daikin Industries in Huizhou, South China's Guangdong province. The $239.75 million facility, spanning 220,000 square meters, is set to become Daikin's largest air conditioning production hub in China once completed.
The new factory is part of Daikin's significant investment in the Chinese market, which has been growing steadily over the years. With 22 existing production bases and multiple research centers across Shanghai, Suzhou, and Jiangsu province, Daikin remains committed to Deepening its presence in the Chinese market despite economic challenges.
Daikin's Managing Director Ishikawa Yasuhiro stated that Guangdong's industrial clusters, robust labor market, and sound business environment were key factors in the decision to invest heavily in this new facility. The company is expecting strong demand for air conditioner products in China, driven by growing demand from domestic industries and increasing infrastructure development.
The base is also notable for its use of cutting-edge technologies, including robots that transport products through the aisles. This reflects Daikin's focus on innovation and efficiency in its production processes.
Japan-Japan cooperation is also expected to play a significant role in China's growth. Companies like Panasonic, which recently broke ground on an electronic materials factory in Suzhou, are expanding their presence in China. The Japanese Chamber of Commerce and Industry in China noted that Japan is one of the leading sources of foreign investment in the country, with cumulative investment exceeding $130 billion.
Growth opportunities for Japan-Chinese cooperation are vast, particularly in fields such as green technology, energy, digital transformation, supply chain automation, high-end materials, and the silver economy. Panasonic is already capitalizing on China's growing demand, having developed senior-friendly products.
"We believe that the Chinese market offers unparalleled advantages," said Tetsuro Homma of the Japanese Chamber of Commerce and Industry in China. "With its vast market, industrial and supply chain capabilities, strong adaptability to new technologies, and immense economic development potential, enterprises can tap into extensive growth opportunities."
The new facility by Daikin marks another significant investment from Japan in the Chinese market, underscoring the country's growing importance as a major foreign investor, with over 55,000 businesses established across the nation.