Daikin increased its investment during the pandemic in Turkey

Daikin Turkey’s CEO, Hasan Onder said: “During the pandemic process and in such an environment where the economy gives negative signals, Japan accelerating its investments shows Japan’s trust in Turkey.

According to the company statement, Daikin Turkey has showed continuous growth since it started to operate in Turkey as a direct investor in 2011. And it will accelerate its activities in the sector with five investments worth $53 million in 2021.

Hasan Onder stating that despite the pandemic process, they carry the sector-led flag by far, he said:

“We are the company with the widest product range in the industry. We anticipate that we will end this year with a total turnover of approximately ₺2 billion 600 million. Our export side is stronger compared to the domestic market. 55% of our turnover will come from exports. We were expecting a 60% contraction when the pandemic process started, but we managed to close the last 3 months with a figure above last year. Daikin, the largest investment since its arrival in Turkey was realized in this period. During the pandemic process and in such an environment where the economy gives negative signals, Japan accelerating its investments shows Japan’s trust in Turkey.”

Investment for factory and R&D center

Stating that they act with the goal of net-zero carbon emission at every step by referring to the motto ‘people’s worth starts from the environment’, Onder said, “With our Solar Energy System (GES) project with an investment cost of 3 million dollars, we were aiming to meet the majority of the energy needs of our factory by generating 5.760 kWp of power. For this purpose, we covered all roofs of our factory with a solar energy system. We are currently producing 110 percent energy of the factory. If we spread it throughout the year, we will get 80 percent of our total energy need from solar energy. We started out with the goal of becoming a green factory. Thanks to our project, while carbon dioxide emissions will decrease by 4 thousand 186 tons per year, 350 thousand trees will be saved.”

Emphasizing that Japan is positioned according to their net zero carbon target for 2050, Onder said, “We will cut all carbon emissions in half by 2030, and we will do this not only on a factory specific basis but also on a product basis. We will also invest in devices used in homes. We can make investments in forest or solar / wind power plants to prevent carbon emissions. Because our priority is to produce green energy. This will be a good investment for green energy works in our country.”

Stating that they will increase the capacity by expanding the split air conditioner production line with a new investment of €15 million, Onder stated:

“We had a production capacity of 1 million 100 thousand units in the outdoor unit and 1 million 400 thousand units in the indoor unit. We have now entered into a new investment that will increase the capacity of 700 thousand outdoor units. The new line we will establish will be implemented in May 2021. This investment will contribute us $100 million in exports. Because now we will sell our split air conditioners mainly to Europe. We performed a total investment of €11 million for three separate factories and an R&D center in Turkey. As Daikin Turkey, while many investors left the market during the pandemic process, we took action to enlarge the land and building of our factory in Sakarya Hendek. For this, we invested 30 thousand square meters of indoor space at a cost of €6 million; This initiative is still under construction.

We already had a facility with an open area of 90 thousand square meters and a closed area of 45 thousand square meters. With our new investment, we will increase our open area to 105 thousand square meters and our indoor area to 75 thousand square meters. In addition, we have another investment of approximately €2 million in our R&D center. We are developing extra laboratories that we will use for product testing. Another investment of ours includes our products such as fan coils, air handling units and combi boilers. We made an investment of €3 million for new model molds and digitalization of these products.”

€100 million will be shifted to a region of Turkey from Europe

Daikin Turkey will also invest about €15 million in the production of VRV systems (variable refrigerant volume system). Stating that this is a huge system, Onder used the following statements:

“A system powerful enough to cool a hospital with an air conditioner. This investment is unique in Turkey. We have a 35 percent market share in the sales market in Turkey and we sell 10 thousand of this product. We are making an investment of 50 thousand units. We will export 40 thousand of these. Thus, we have an export opportunity of ₺100 million. In this field, our factory in Europe will only manufacture for Europe. In terms of both logistical advantage and easy manageability, the Middle East and Africa (MEA) region’s products will go from Turkey. With this investment, there will be a regional shift. ₺100 million from the European region will be shifted to Turkey and it will be a really great chance for us.”

Onder, said that with investments contributing to Turkey’s economy they are also continuing investments in the field of employment. “We have a team of 1,400 people. We aim to increase this number to 2 thousand people within 2 years. This will make a significant contribution to both the engineering field and the sub-industry as we produce high-tech products.”

Source: AA / Translated by Bazaar Times Team

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