Business

Daikin opens AC firm in Saudi Arabia

Kyodo

Daikin Industries Ltd. said Thursday that it has set up an air conditioner sales company in Saudi Arabia in a joint venture with a local investment firm to boost sales in the country, the largest air conditioner market in the Middle East.

The new firm, Daikin Air Conditioning Saudi Arabia LLC, based in Riyadh, is aiming to increase its share to 20 percent by fiscal 2018 from several percent at present as Daikin has been falling behind U.S. and South Korean manufacturers in the country.

As housing developments are increasing at a fast pace in Saudi Arabia, the air conditioner market is expected to grow 40 percent from fiscal 2011 to ¥140 billion in fiscal 2015, according to the Osaka-based company.

A Daikin subsidiary in Europe has a 75 percent stake in the new firm.

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