Daikin to Open New Chiller and Heat-Pump Factory in Jeddah as Part of Saudi Expansion Drive
New facility will produce air-cooled chillers and support growing HVAC demand across the Kingdom and region
Japanese HVAC-R giant has announced the construction of a new manufacturing plant in the 3rd Industrial Area of Jeddah, Saudi Arabia, marking its latest move to deepen its regional industrial footprint.
The facility — covering a built-up area of approximately 36,000 square metres within a 129,000 m² site — is being erected to produce air-cooled chillers and, in due course, hydronic heat-pump systems and other large-scale cooling solutions.
The new factory follows Daikin’s earlier investments in the Kingdom.
In 2022 the company opened its first Saudi plant at Sudair Industrial City near Riyadh for air-handling units and applied air-conditioning systems.
That facility was built as part of Daikin Middle East & Africa’s five-year regional growth strategy and aligned with Saudi ambitions under Vision 2030 to expand domestic manufacturing and energy-efficient infrastructure.
The Jeddah factory is positioned to meet rising demand across both the Kingdom and wider Middle East region, enabling faster local delivery, reduced import dependence and improved support for large commercial, industrial and district-cooling projects.
The plant’s launch underscores Daikin’s commitment to localising production and strengthening supply chains in a region experiencing rapid construction growth and rising cooling needs.
While Daikin has not yet disclosed the full investment value or long-term output targets for the new facility, it is clearly part of a broader strategy to expand its HVAC-R manufacturing capabilities in Saudi Arabia.
Observers suggest the move could also help reduce logistics lead times and support national goals for energy efficiency and industrial diversification.
With construction underway, the Jeddah plant is expected to play a significant role in meeting the Kingdom’s increasing demand for advanced cooling solutions — a demand driven by urbanisation, mega-project infrastructure and climate-related factors.
For Daikin, the expansion reinforces its ambition to be a leading HVAC-R provider in the Middle East, delivering locally made systems tailored to the region’s market and environmental realities.
The facility — covering a built-up area of approximately 36,000 square metres within a 129,000 m² site — is being erected to produce air-cooled chillers and, in due course, hydronic heat-pump systems and other large-scale cooling solutions.
The new factory follows Daikin’s earlier investments in the Kingdom.
In 2022 the company opened its first Saudi plant at Sudair Industrial City near Riyadh for air-handling units and applied air-conditioning systems.
That facility was built as part of Daikin Middle East & Africa’s five-year regional growth strategy and aligned with Saudi ambitions under Vision 2030 to expand domestic manufacturing and energy-efficient infrastructure.
The Jeddah factory is positioned to meet rising demand across both the Kingdom and wider Middle East region, enabling faster local delivery, reduced import dependence and improved support for large commercial, industrial and district-cooling projects.
The plant’s launch underscores Daikin’s commitment to localising production and strengthening supply chains in a region experiencing rapid construction growth and rising cooling needs.
While Daikin has not yet disclosed the full investment value or long-term output targets for the new facility, it is clearly part of a broader strategy to expand its HVAC-R manufacturing capabilities in Saudi Arabia.
Observers suggest the move could also help reduce logistics lead times and support national goals for energy efficiency and industrial diversification.
With construction underway, the Jeddah plant is expected to play a significant role in meeting the Kingdom’s increasing demand for advanced cooling solutions — a demand driven by urbanisation, mega-project infrastructure and climate-related factors.
For Daikin, the expansion reinforces its ambition to be a leading HVAC-R provider in the Middle East, delivering locally made systems tailored to the region’s market and environmental realities.
