761,000 Square Foot Facility To Be Fully Operational in 2024

Daikin Comfort Technologies North America, Inc. (Daikin) will build a 761,000 square-foot manufacturing facility in Mexico that will be fully operational in 2024, the company announced today. The estimated $230 million investment is a pillar of an aggressive growth strategy in response to increasing demand for Daikin products in North America and Latin America, which include the Daikin, Goodman®, and Amana® brands.

"Daikin is intensely focused on becoming the North American HVAC industry leader in all aspects, from production and innovation to quality and customer service," said Satoru Akama, President and CEO of Daikin Comfort Technologies North America, Inc. "In order to meet the increased demand for our technologies and products throughout North America and Latin America, and from a business continuity standpoint, it is absolutely necessary to expand our manufacturing presence into Mexico."

The new facility will localize production of Daikin's mini-split and Daikin FIT residential inverter products that are currently imported from manufacturing sites in Asia.

Daikin has already expanded its manufacturing presence into Mexico, migrating the production of some modular blower product lines to a 200,000-square-foot repurposed facility. That facility will supplement production at DTTP with five product lines once fully operational in 2023.

"It is vital to integrate production at a local level to efficiently maintain our high standards to deliver quality service to our customers," Akama said. "It also underscores our belief in adding manufacturing capacity where our products are bought, sold and used."

A vast majority of manufacturing operations will remain at DTTP's 4.3-million-square-foot campus, where production volume, scale and workforce headcount will not be impacted by the new sites. Production at DTTP is on pace to eclipse manufacturing records set in FY21.

"Daikin Texas Technology Park will continue to be the center of our operations and forefront of Daikin's innovation in North America," Akama said. "Our presence in Mexico will be a wonderful complement to the tremendous achievements and continued growth in manufacturing operations at DTTP."

DTTP, which has served as the company's North American headquarters since 2017, currently employs a workforce of close to 10,000 and continues to actively recruit new team members.

Growth beyond the bounds of DTTP's massive facility is a corollary to Daikin's expansion in the United States. Demand for Daikin, Goodman, and Amana brand products has increased significantly across more than 80 locations and 20 states in the last 21 months through the acquisition of Stevens Equipment Supply, LLC, ABCO HVACR Supply + Solutions, Robinson Plumbing & Heating Supply Co., Inc. Thermal Supply, Inc., AirReps, LLC and CCOM Group, Inc.

Daikin has also expanded operations in the Greater Houston region in recent years. In 2020, it added 62,000 square feet of office space and common areas at DTTP. Last year, the company signed a 494,800 square-foot lease in northwest Houston to supplement distribution and logistics operations. Daikin has since built out that site, which now serves as a parts distribution center.

"We remain committed to focusing intense recruiting efforts in the Greater Houston region," said Kristi Pittman, Vice President of Human Resources. "Our priorities continue to be enhancing our employee experience, filling open positions with talented individuals, and preparing for future growth."

"We have made substantial investments in Daikin Texas Technology Park, the surrounding community, and the Greater Houston region and will continue to build our team locally," Akama said. "We are so proud of what we have accomplished and look forward to advancing our footprint across North America."

For more, visit www.northamerica-daikin.com.

Daikin Industries, Ltd. (DIL) is a Fortune 1,000 company with more than 84,870 employees worldwide and is the world's #1 indoor comfort solutions provider company. Daikin Comfort Technologies North America, Inc. (DNA) is a subsidiary of DIL, providing Daikin, Goodman, Amana® and Quietflex brands products. DNA and its affiliates manufacture heating and cooling systems for residential, commercial and industrial use and are sold via independent HVAC contractors. DNA engineering and manufacturing is located at Daikin Texas Technology Park near Houston, Texas. For additional information, visit www.northamerica-daikin.com.

Amana® is a registered trademark of Maytag Corporation or its related companies and is used under license. All rights reserved.

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