OSAKA -- Major air conditioner maker Daikin Industries Ltd. said Tuesday it will establish a wholly owned subsidiary in France later this month for the manufacturer of fluoroelatomers used in automobile parts such as fuel pipes.
Daikin Chemical France S.A.S. will be capitalized at about 1.1 billion yen and build a factory outside Lyon early next year, the company said. It will start operations in February 2003. Products manufactured there will be exported not only to European countries but also to the United States and Asian nations, it said.
"The European countries represent one of the most important markets, accounting for approximately 20 percent of the global demand for fluorochemicals," the firm said.
Daikin said it expects high growth in demand for fluoroelatomers for use in auto parts such as injection molding and turbocharging hoses for diesel engines, especially in Europe.