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Daikin aims to increase its market share in Saudi Arabia

December 2020

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Q1: Please elaborate on Daikin’s new innovative technologies in development that will enhance service offerings when released, highlighting when these technologies will be launched/available in the Arabian Gulf region?  

Mr. Satoshi Matsuzaki, Managing Director, Daikin KSA: Daikin strives to continuously introduce new products or services to each region we operate in. In Saudi Arabia, we launched key products that reflect our technological leadership and innovation to meet market demand. For instance, we recently launched the VRV X Cooling-Onlyair-conditioning system to further expand our VRV product family and cover more applications. Also, we unveiled our new heat pump wall mounted inverter system and R-32-based SkyAir Concealed ranges to further complete our Inverterization direction in the Kingdom.

In Applied business, the company has taken big steps to strengthen our market position and range.  In the highly competitive chillers range, we introduced the premium efficiency screw chillers with HFO1234ze refrigerant and a new generation of air-cooled scroll chillers and heat pumps with R-32 refrigerant. In terms of airside equipment, Daikin offers plug and play designs using highly efficient and optimized fresh air treatment methods that follow high indoor air quality (IAQ) standards.  We have fully utilized our air handling unit (AHU) factory in Jebel Ali, Dubai to manufacture EUROVENT-certified AHUs and offer customized airside solutions for all applications.

Our Modular Offsite Solutions have added further value to our market approach by allowing us to offer tailored modular solutions such as Chiller Plants “MCP” and Pump Skids. These solutions are engineered to meet the demands of modern buildings and are highly flexible to accommodate potential expansion in the future, improve lead times and offer a single-source responsibility system.

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Q2: How will energy-saving technologies provide new value and make people and air comfortable and healthy in the years ahead? 

Mr. Haitham Ghanem, Sales Director, Daikin KSA: Over the years, we have successfully positioned ourselves as a leading player in the unified efforts to decrease the impact of cooling, heating and refrigeration systems. Our leadership in these segments demonstrates our commitment to bringing these advancements and innovation to the region. In fact, our launch of the inverter split and SkyAir series using the low GWP R-32 refrigerant represents a major step towards reducing our environmental impact, supported by our continuous improvements to offer the most efficient air-cooled chillers, water-cooled chillers and related airside products with all energy saving options.

The public sector has now started reducing its electrical energy subsidies, driving in a growing preference for energy-efficient products and companies with technologies leading such trend. Daikin is committed to supporting various markets in implementing more energy-efficient solutions.

 

Q3: What are Daikin’s plans for the Saudi to take on more responsibilities in the future following its continued success in fulfilling their current obligations? 

Mr. Satoshi Matsuzaki: Despite the difficult conditions, Daikin Industries has achieved sales increase by 2.8% to reach JPY 2,550 bn ($23.8bn) at the end of the 2019 financial year, which ended on 31st March 2020. It is the 10th consecutive year of sales increases for the group, with air conditioning and refrigeration total sales increasing by 3.9% year on year to JP Y2,309bn ($21.5bn).

In the Kingdom, Daikin Saudi aims to increase its market share. As such, we have appointed key dealers in each major city to promote and sell our residential and commercial solutions. We are also successful in replacement business and have started heavily in promoting our Refrigeration and highly efficient chiller solutions to key projects.

 

Q4: What are the strategic plans and future developments that Daikin Saudi is planning in the Kingdom? 

Mr. Satoshi Matsuzaki: Daikin is currently looking into increasing its visibility and presence in the region and is keen to open more local offices and affiliates across major markets such as Abu Dhabi and Africa.

In Saudi Arabia, we have three branches that cater to the needs of its key regions and they are supported by our warehouse, training center, professional sales team, and after sales services.  We are set to expand to accommodate key projects planned across the kingdom.

 

Q5: How does Daikin plan to maintain itself as the regional market leader regarding introducing climate-friendly refrigerants? 

Mr. Haitham Ghanem: The countries that ratified the Kigali amendment to reduce the global warming impact of HFC refrigerants are now working to replace refrigerants commonly used today with those having a lower environmental impact. To show our support for this initiative, Daikin will now provide free access to its patents covering HVAC equipment using the low GWP R-32 refrigerant.

From a regional perspective, Daikin also supports the United Nation's continuing efforts to assist regional manufacturers in their evaluation of low GWP alternative refrigerants suitable for high ambient operations. Furthermore, Daikin as a global refrigerant and equipment manufacturer can work with all clients for the service of recovering and recycling the refrigerant for old and installed equipment.

 

Q6: Please highlight some of the projects that Daikin’s technologies are being used or have been used recently in the region and comment on how the company has adapted its systems to meet the particular specification of some of the more challenging recent projects.

Mr. Haitham Ghanem: Daikin has supplied products and solutions to key projects in the region, including Expo 2020 pavilions, museums, villa residential compounds, stadiums, malls and hotels.

Daikin manufactures a diverse portfolio of HVAC-R products - from the smallest 1-ton split system to the largest 6,000-ton chiller series - and other solutions such as controls, industrial and commercial refrigeration systems, refrigerants, compressors, and offsite modular solutions.

We have been spreading VRV technology in the region and are now working on the ‘Inverterization’ of the entire product range right from splits and till chiller systems, as well as on the use of new green refrigerants such as R-32. In line with this, Daikin has identified that the acceptability for green products is increasing, and with government regulations for energy efficiency coming in place, it will further fuel the growth in the market. The company continues to remain steadfast in its commitment to providing key markets with highly efficient products that have been designed to meet growing customer needs and expectations.

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Daikin aims to increase its market share in Saudi Arabia

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