Daikin expands its footprint, builds new plant in Jeddah

Daikin has started building a new manufacturing facility in Jeddah, marking another step in the Kingdom of Saudi Arabia’s push to grow its local industry under Vision 2030. The groundbreaking took place on 26 November, supported by long-time partner Tariq Almutlaq. The new site will produce chillers and hydronic heat pumps, equipment that is widely used in buildings across the Kingdom. By making these systems locally, Daikin aims to cut delivery times, reduce import dependence, and offer products better suited to the region’s extreme climate.

Demand for energy-efficient cooling has surged as major Saudi projects like NEOM and the Red Sea development move ahead. Daikin says the new plant will help it respond faster to customer needs across the Middle East, while also opening opportunities for local jobs and skills development.

The facility will follow Daikin’s global production standards and include testing labs to check every unit before it leaves the factory. This approach is expected to improve reliability and performance for customers.

The Jeddah project builds on Daikin’s earlier facilities in the UAE and Saudi Arabia, adding another link in its regional growth plan. Once operational, it will support the Kingdom’s wider goals of sustainability, industrial growth, and stronger local manufacturing.