Daikin has begun construction of a new manufacturing facility in Jeddah that will focus on producing chillers and hydronic heat pumps for the Saudi and wider regional markets, the company said. The project follows Daikin’s earlier investment in a plant in Sudair Industrial City near Riyadh and aligns with Saudi Arabia’s broader industrial development goals.
The new facility supports Daikin’s Middle East growth strategy, which prioritizes local production, sustainable expansion, and deeper market penetration. It will initially manufacture large air-cooled chillers, with additional product lines to be added as demand evolves.
Industry sources noted that the Jeddah plant is expected to increase local steel consumption as Daikin plans to source materials domestically for its applied HVAC equipment.
