Daikin commits $410 MILLION to building new business campus

USA –DAIKIN is to build a new 350,000 m² plant in Houston as part of its major development plans for the long-term expansion of its US market.


This new $ 410 million campus will incorporate the four existing Goodman factories in order to consolidate the marketing and customer support activities of Daikin. This perspective is also considered as a significant move to increase the production and sales of VRF (variable refrigerant flow) technology in a country where an annual growth of 20% has been recorded in sales of air conditioning equipment.
Work on construction of the new campus is expected to start soon and basic operations are expected to begin by mid-2016.
The acquisition of Goodman by Daikin in 2012 has increased the company’s turnover and profile in North America, but the Japanese manufacturer is targeting a greater capacity to achieve higher growth in production. In March 2014, Daikin began producing its VRV IV heat pump in an assembly line at the Goodman plant in Houston.
In addition to improving Goodman’s production facilities, Daikin announced the news by revealing the state of Daikin production technology and thereby targeting greater productivity. It will also allow the company to reduce inventory through the sharing of components and minimize delays.

According to the WALL STREET JOURNAL, the new site will be built in HOCKLEY, about 45 kilometers northwest of HOUSTON. The Wall St Journal also reveals that the Japanese manufacturer is planning to close GOODMAN sites in TENNESSEE and TEXAS. Daikin’s purchase of Goodman for 3.7 billion dollars was seen as a way for the Japanese manufacturer to launch its VRF technology in North America. The agreement gave Daikin access to the Goodman sales network, which has a market share of over 60% among contractors and dealers in the US.

Due to the increased regulation of energy in the United States, Daikin anticipates a growth in the residential demand for the highly efficient VRF technology. Although sales have begun for the products integrating Daikin’s Inverter technology to the residential market, Goodman also plans to aggressively launch similar products this year.
Although ducted heating and cooling system products are still heavily marketed to the general public in North America, the ductless market is growing rapidly with an annual rate of over 20% while Endocrine products such as the Daikin VRV air conditioners are also beginning to take off. Daikin recognizes the market is experiencing a period of rapid growth, with substantial growth also observed in the light commercial market.