Daikin Europe N.V. unveils ambitious 5-year plan to invest € 840 million and create 4 000 jobs

11/10/2021

Brussels, 11 October 2021Daikin Europe N.V. announces Strategic Management Plan “Fusion 25” to accelerate growth in the next five years.

  • Daikin Europe N.V., with headquarters in Belgium, aims to deliver on the needs of a changing society, and to become a total solutions provider in heating, ventilation, air conditioning and refrigeration (HVAC-R) in all its regions (Europe, Middle East and Africa).
  • With a projected turnover of € 5.7 billion by financial year 2025, the growth pace is ambitious (in 2020 the group achieved € 3.4 billion).
  • Investments are intended to grow its R&D Centers in Europe, expand manufacturing, sales and service capacity and fund the development of the digitalization of its business model.
  • To deliver on its plans, the company aims to recruit 4 000 employees by 2025, which will bring its workforce in the region to around 16 000 heads. At least 400 of them are needed to reinforce its activities in Belgium, especially for R&D, Service and HQ functions.

Ambitious growth and contributions to society

Daikin’s Fusion 25 plan starts from a societal context in which humanity faces urgent issues, such as global warming, energy shortages and the need for healthy indoor air. These issues coincide with the digitalization of society, which fundamentally changes the way we live and do business. Daikin sees it as its responsibility  to contribute to solving these societal challenges, while growing its business.

The plan identifies 3 strategic growth areas, for which substantial investments are planned :

  1. Daikin carbon neutral (net zero) by 2050
  2. Be a total solution provider
  3. Creating healthy indoor air

 

Daikin carbon neutral (net zero) by 2050

Daikin takes its role to tackle carbon emissions seriously. In that context, in 2018, Daikin Industries Ltd. launched its Environmental Vision 2050. Under this programme, Daikin aims to achieve carbon neutrality in every aspect of its business, including the use and waste phase of its installed products. The first intermediate target for this, is to achieve a 30% reduction of CO2 emissions by 2025[1].

For the next five years, the focus of Daikin Europe N.V. is to contribute to the global plan with the expansion of its heat pump business, developing energy-saving air conditioning and refrigeration equipment with lower Global Warming Potential (GWP) and/or natural refrigerants, as well as establishing a circular business model for refrigerants.

To innovate in hydronic heat pump and refrigeration technology, Daikin decided to establish its global R&D Center in Ghent in Belgium and drastically expand its capabilities there.

Heat pump technology

  • Heat pumps play a crucial role in Daikin’s global CO2 reduction plan. Daikin will globally promote the uptake of heat pump technology to reduce carbon emissions.
  • Heat pumps in Europe contribute to the EU Green Deal decarbonization strategy for the heating sector. For each kWh heating the carbon impact of a heat pump is half the impact of a high efficiency gas boiler. And when run on renewable electricity, the carbon footprint of a heat pump drops even further, unlike combustion heating.
  • As a result of the favourable market conditions and its long-standing expertise in heat pumps, Daikin intends to more than double its heating business by 2025. All heat pumps sold in Europe are developed and produced in Europe, in the Daikin factories in Germany, Belgium and Czech Republic.
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Mr. Patrick Crombez, General Manager Heating Business : “The way we are heating our buildings in Europe is a big source of carbon emissions, and we are running out of time to decarbonize in this domain. This decade is crucial to take action, and the EU leads the way with its Green Deal targets to reduce carbon emissions by at least 55% by 2030. Our strategic plan fully supports this, and includes major investments for heat pump R&D and production capacity increase in Europe. We aim to drive truly sustainable growth in the heating business.” 

Refrigerant initiatives

  • The transition to circular business models is another spearpoint in the EU Green Deal. Daikin Europe has already established a program for the circular use of refrigerants used in large commercial air conditioning equipment, which it calls LꚙP by Daikin. The plan is to extend to more types of products and refrigerants.
  • In view of developing a sustainable business line that covers the total cold chain, the company will further expand its applied and refrigeration product line up that combines energy-savings with low GWP and natural refrigerants.

Be a total solution provider

Customer Excellence

In the coming years Daikin intends to expand value added services based on equipment connectivity such as monitoring of indoor CO2 levels, energy consumption and predictive maintenance.

In the new eco-system of digitally connected professionals, installers and end-users, Daikin’s focus is to deliver convenience for all, making it easy to buy, install, use and service its systems. Part of the € 840 million investment will go to the development of a customer engagement platform.

Furthermore, to reach out to its residential end-users, and promote understanding of its low carbon and energy-saving solutions, the group will open interactive showrooms in major European cities.

Total solutions for specific customer needs

Daikin intends to leverage its broad portfolio and technological know-how in all areas of its heating, ventilation, air conditioning and refrigeration business to bring solutions that satisfy diverse customer needs, not in the least helping customers to reduce their own CO2 emissions. The company will drastically increase its sales and service capabilities through recruitments, partnerships and external growth.

Highlights in the commercial and industrial business segment

  • Provide maintenance, repair, retrofit and replacement solutions, which can include system design and engineering services for its own products, or combined with external equipment and controls.
  • Provide consultancy services for optimal system design and engineering in support of the most demanding green building, acoustics and design standards.
  • Refrigerated supply chain : Focus in particular on the food cold chain from place of production to consumption (“Farm to Fork”). Contribute to reducing food loss and ensuring food safety by utilizing data and monitoring. Furthermore, expand the offer of specific solutions for the medical cold chain.

Creating healthy indoor air

The Daikin group globally has a complete line-up of ventilation and air purification equipment. Earlier this year Daikin’s air purifiers were tested by the renowned Institut Pasteur de Lille and confirmed to be highly efficient in eliminating respiratory viruses such as Covid-19 and the common flue. Daikin Europe aims to become the region’s leading player in the ventilation and air purification market.

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Mr Tsubouchi, President of the Daikin Europe Group concludes : “We aim to be an organization where diverse people from all over the world can play an active role and create new value for local businesses, customers and society in Europe, the Middle East and Africa. We are in a new era, and we are reinventing ourselves to offer innovations and tailor-made solutions across all Daikin products and business segments. I am confident that, together with our loyal partners and open collaboration with organizations that share our ambitions for society, we will realize our goals for our Fusion 25.”

For more information, please visit: www.daikin.eu

 

Media contacts

Sofie Sap - Corporate Communications Daikin Europe (Dutch/French/English)

T.:  +32 472 580482

Mail: sap.s@daikineurope.com

Daisuke Kakinaga – Corporate Communications Daikin Europe (Japanese/English)

T. : +32 465 462 321

Mail:kakinaga.d@bxl.daikineurope.com

 

[1] Compared to base year 2019, Business As Usual Scenario. See: https://www.daikin.com/investor/data/fusion/fusion25.pdf

About Daikin

We care for the air. We deploy our years of experience in air conditioning and our passion for innovative technologies to make the air that we live in the best possible air. And we want to do that while caring for the environment and protecting future generations. By 2050 Daikin aims to be carbon neutral in all its actions and the products and solutions it sells. That is our mission at Daikin.

Daikin Europe N.V.

Daikin Europe N.V. is a subsidiary of Daikin Industries Ltd. and the headquarters for air conditioning, air purification, ventilation, heating and refrigeration (HVAC-R) equipment sales in Europe, Middle East and Africa. 

With a large network of subsidiaries and a strong professional partner network, it is the leading provider of energy-efficient residential, commercial and industrial HVAC-R in the region. Daikin Europe designs and manufactures air conditioners, heat pumps and refrigeration equipment in the region.

To date Daikin Europe has around 12 000 employees across 24 EMEA affiliates. It has 14 major manufacturing facilities based in Belgium, the Czech Republic, Germany, Italy, Spain, Turkey, Austria and the UK.

The headquarters of the Daikin Europe Group are in Belgium, with offices in Ostend, Ghent and Brussels. The company was established in 1973. Daikin employs 2.171 employees on Belgian territory.

Market leader for heat pump technology in Europe

With over 90 years of experience in the heating and air conditioning industry, Daikin is the market leader in heat pump technology. The company is well known for the Daikin Altherma hydronic heat pumps for private heating applications. Over 85% of the devices for the European market are produced in Europe.

Total HVAC and Refrigeration Solution provider

Daikin’s broad product portfolio allows for tailor-made solutions that address any customer’s needs relating to HVAC-R and healthy indoor air. In recent years, Daikin has complemented its product portfolio and greatly expanded its market presence in Europe in heat pump technology, as well as commercial and industrial refrigeration. In 2016, Daikin Europe N.V. acquired Zanotti S.p.A., the Italian manufacturer of industrial and transport refrigeration. In February 2018, Tewis Smart Systems S.L. joined the group. Tewis manufactures off the shelf and tailor-made refrigeration solutions with CO2 as refrigerant. At the beginning of 2019, Daikin Europe N.V. acquired the Austrian-based global refrigeration group AHT Cooling Systems GmbH. 

About Daikin Industries Ltd.

Daikin Industries Ltd. based in Osaka, Japan, employs around 85,000 people worldwide and achieved sales of around € 18.5 billion in financial year 2020 (April 20 – March 21). The company is the global market leader for heat pump and air conditioning systems, as well as air filtration. Daikin Industries Ltd. is the only air conditioning manufacturer in the world that develops and produces all important components such as refrigerants, compressors and electronics in-house. 

 

More information can be found on www.daikin.eu and on www.daikin.com.

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