Daikin Industries Ltd. (Osaka, Japan) 100% subsidiary (affiliate) Daikin Europe N.V. (Oostende, Belgium), has established “Daikin Air Conditioning Saudi Arabia” in joint venture with “RIRAC,” a Saudi joint company between “Rajhi Holdings” and “Al Mutlaq Group” conglomerate.
Daikin Industries Ltd. (Osaka, Japan) 100% subsidiary (affiliate) Daikin Europe N.V. (Oostende, Belgium), has established “Daikin Air Conditioning Saudi Arabia” in joint venture with “RIRAC,” a Saudi joint company between “Rajhi Holdings” and “Al Mutlaq Group” conglomerate. The business operation will commence from December 2013. Saudi Arabia is the biggest HVAC market in the Middle East region and has many opportunities; as such market share of around 10% by 2015 and around 20% by 2018 is foreseen.
The Saudi Arabian economy supported by its petroleum industry saw continued GDP growth of 6.8% in 2012. In Saudi Arabia due continuing government sponsored major urban development projects there is a growing demand for air conditioning including large scale Applied machinery. Due to the increase in major housing developments, despite the population not increasing at the same rate, the demand for residential air conditioning appliances is also growing. As a direct result of this the HVAC market in 2015 is predicted to grow to around 1.4 billion USD* from 1 billion USD in 2011. *excluding window air conditioner market
The setup of the new company allows greater sales strength and service capacity to access this growing region. The full line up of products from residential air conditioning to large scale Applied machinery will be offered and Daikin will aim to achieve the number 1 share in the Saudi Arabian market.
New Company Summary
1) Company name: Daikin Air Conditioning Saudi Arabia LLC
2) Location: Riyadh, Saudi Arabia
3) Representative: General Manager – Hiroshi Shimada
4) Capital: 27 million SAR (7.2 million USD)
5) Equity share: Daikin Europe NV 75% partner RIRAC 25%
6) Established: December 2013
7) Business activity: Sales and after sales service of HVACR equipment
8) Employees: 90 to be recruited in the first year of activity
Daikin Europe N.V. Summary
1) Company name: Daikin Europe N.V.
2) Location: Oostende, Belgium
3) Representative: Mr Masatsugu Minaka
4) Capital: 155 million EUR
5) Equity share: Daikin Industries Ltd. 100%
6) Established: 1972
7) Business activity: Manufacture and sales of HVAC equipment
8) Turnover: 1.85 billion EUR (FY 2012)
9) Employees: 5,400 ( end of FY 2012)