Daikin to Invest $114 Million in Türkiye as Regional Hub for MEA Operations

Air Conditioner

TURKEY: Japan-based air conditioning manufacturer Daikin announced plans to invest €100 million ($114.8 million) in Türkiye, aiming to leverage the country’s production capacity and engineering infrastructure as a regional hub for its Middle East and Africa operations.

Daikin entered the Turkish market through the acquisition of Airfel and has been expanding local production, particularly for specialized products. Speaking to Anadolu, Hasan Onder, CEO of Daikin Türkiye, highlighted that the air conditioning sector performed strongly in 2024, driven by global warming and inflation-related demand, a trend that has continued into 2025. Over the first ten months of the year, Daikin Türkiye has exceeded its targets by 22%.

Onder emphasized Türkiye’s significant growth potential, noting that air conditioning ownership in the country remains around 15–20%, while split AC sales are projected to reach 2.2 million units by year-end. In contrast, the market for “combi” units (combined air conditioner and heater devices) is experiencing a decline due to the increasing adoption of heat pumps and other environmentally friendly alternatives.

The central system market remains robust, including products such as variable refrigerant volume (VRV) systems and applied chillers, with production already underway in Türkiye. A substantial share of products destined for the Middle East, Gulf, and Africa is expected to be exported from Türkiye over the next five years.

Onder noted that the Turkish operations are strategically positioned to support the region’s growing demand, particularly as countries such as Saudi Arabia and the UAE implement their 2030 strategy plans. He highlighted Türkiye’s strengths in human resources, advanced systems, and factory technology, positioning Daikin Türkiye as a key contributor to the company’s US$30 billion global turnover and ongoing international expansion.

Overall, Onder forecasted steady growth for the air conditioning sector in Türkiye over the next five years, regardless of geopolitical uncertainties, with the country serving as a critical manufacturing and export hub for the broader region.

Source: Daikin