Daikin to Model its Global Plant on the United States Site

India: Daikin is constructing a plant in Houston in the state of Texas. In order to increase the efficiency, the company will standardize its new production sites along with installing same type of equipment at its second Indian plant and in a new facility in Vietnam. Further, Daikin has plans to standardize all its plants worldwide.

The company will invest around USD479 million in its U.S. plant and the plant will feature standardized assembly conveyors with floor space totaling 370,000 sq. meters. For testing the products, sensors that measure noise and vibrations will be installed. It will employ the technology to connect all its hardware via sensors and collect data so that managers at other sites will have the assess about spotting the problem and production improvements.

According to TechSci Research, the company owns around 70 plants worldwide and most of them are owned through aggressive acquisitions because of which the processes and the equipment vary a lot which leads to problems for the managers who are overseeing the plants thus contributing to the push for standardization and if the approach proves effective the company will re-examine its existing plants in Japan and elsewhere. By initiating this step Daikin hopes to save about 20% equipment costs for new plants and with no need to design the production lines for each plant, construction time would also be halved to about nine months, in return will increase the companies output more flexibly.

According to a report published by TechSci Research, “Global Air Conditioners Market Forecast & Opportunities, 2020”, global air conditioner market is projected to grow at a CAGR of 8.5% during 2015-20. In addition to the residential segment, growing hospitality and tourism sectors are contributing significantly towards rising demand for air conditioners across the globe. Introduction of energy-efficient air conditioners and air conditioners with in-built air purifiers is expected to boost air conditioner sales in the coming years. Split air conditioners dominated the global air conditioners market over window air conditioners, and this trend is expected to continue during the forecast period. The adoption of window air conditioners, VRF system, chillers and portable air conditioners is also expected to grow over the next five years. Few of the major air conditioner manufacturers with significant global footprint include Gree, Daikin, Toshiba, Carrier, Midea, LG, Panasonic and Trane.