Daikin Australia Strengthens Local Manufacturing with $28.6 Million Investment in State-of-the-Art Chipping Norton Facility
Daikin Australia has reaffirmed its long-term commitment to the nation’s manufacturing sector, innovation, and job creation with the official opening of a $28.6 million local manufacturing facility in Chipping Norton, New South Wales. The new facility, known as Factory 2, represents a major expansion of Daikin’s production capabilities in Australia and underscores the company’s dedication to delivering locally designed and manufactured solutions for Australian customers.
The establishment of Factory 2 aligns with Daikin’s global strategy of ‘local products for local markets.’ The facility significantly enhances Daikin Australia’s capacity to produce customised Air Handling Units (AHUs) and Rooftop Packaged Air Conditioners, while also creating the potential to expand ducted indoor system production to meet anticipated future demand. Hideaki Furihata, Managing Director of Daikin Australia, explained that the investment reflects both confidence in the strength of the Australian market and recognition of the country’s highly skilled workforce.
“Our decision to invest locally stems from Daikin Australia’s strong market position, confidence in our people, technology, and network, and our plans to broaden our range of locally designed and produced products,” Furihata said. “This new factory strengthens our ability to meet the needs of Australian customers with products that are designed, engineered, and built here, while advancing our goal of carbon-neutral manufacturing by 2030.”
Construction of the facility began in early 2024 and was completed in August 2025. The project received support from Investment NSW through a grant recognising Daikin’s role in creating highly skilled manufacturing jobs in Western Sydney. The new facility is equipped with cutting-edge technology, including autonomous mobile robots, expanded solar photovoltaic (PV) generation, and a fully digitalised sale-to-manufacture processing system. These innovations enhance efficiency, streamline production, and reduce the facility’s environmental footprint.
Beyond Factory 2, Daikin Australia has been actively investing in other local initiatives to strengthen its domestic manufacturing base. The company has brought printed circuit board (PCB) manufacturing onshore, achieved Australian Made certification for most of its locally built products, and established a dedicated skills dojo. This dojo, led by Daikin Japan-trained experts, focuses on developing manufacturing talent and fostering a culture of continuous improvement.
All ducted systems, rooftop packaged units, and air-handling units manufactured in Australia now carry the Australian Made mark, reflecting the company’s commitment to delivering products suited to local conditions. These systems incorporate Australian-sourced components and assemblies wherever possible, supporting local suppliers and ensuring quicker service and spare-part availability for customers.
Factory 2 was initially expected to create 45 new roles; however, it has already delivered over 60 full-time positions across production, research and development, and support functions. Daikin Australia now employs more than 700 people nationwide, including 240 employees who live within 10 kilometres of the Chipping Norton headquarters. The company collaborates with over 20 local suppliers, a network expected to grow further as production demand increases.
Nicholas MacDonald, Manufacturing General Manager at Daikin Australia, highlighted the long-term strategic benefits of the new facility. “The new factory gives us room to innovate and expand our locally manufactured offering in key residential and commercial segments,” MacDonald said. “By combining advanced automation, a strong supplier network, and continuous skills development, we can respond more quickly to customer needs and ensure that manufacturing strength remains firmly based in Australia.”
The official opening of Factory 2 was a high-profile event, attended by several senior representatives from Daikin’s global operations, including Shoji Uehara, Head of Global Operations Division and Training at Daikin Industries; Junichi Omori, Executive Officer and General Manager of the Global Operations Division; and Akinori Atarashi, Associate Officer and Regional General Manager for the Air Conditioning Business in ASEAN/Oceania countries. NSW Government representatives, the Consul General of Japan, and Daikin’s suppliers, dealers, and partners were also present to mark the milestone.
The facility is designed with flexibility and growth in mind, allowing Daikin to scale production and technical capabilities in line with future market requirements. This includes potential expansion into additional product lines and increased automation to maintain efficiency and sustainability.
Daikin Australia’s investment in Factory 2 comes at a time when the company continues to focus on sustainability, innovation, and the local economy. The facility’s solar PV system and energy-efficient manufacturing processes are part of Daikin’s broader goal to achieve carbon-neutral manufacturing by 2030. By integrating cutting-edge automation and digital processes, the company aims to reduce waste, improve production precision, and maintain the highest standards of quality for its customers.
The local manufacturing expansion also strengthens Daikin’s relationships with Australian suppliers and partners. By sourcing more components domestically, Daikin not only reduces lead times and logistical complexities but also supports the broader Australian economy. This approach ensures that the value chain remains resilient, adaptable, and closely connected to the company’s operational hubs.
In addition to production, the Chipping Norton facility plays a critical role in research, development, and innovation. The factory’s R&D capabilities are designed to support the creation of products tailored to Australia’s unique climatic and market conditions. This includes enhancing energy efficiency, integrating advanced air quality control technologies, and developing systems that meet stringent local standards for commercial and residential applications.
Daikin’s Australian manufacturing expansion exemplifies the company’s long-term commitment to delivering sustainable, high-quality solutions for customers while investing in local talent and infrastructure. By creating jobs, fostering innovation, and supporting local suppliers, Daikin Australia continues to play a vital role in strengthening the nation’s manufacturing sector.
As demand for advanced heating, ventilation, and air-conditioning (HVAC) solutions grows across residential, commercial, and industrial sectors, Factory 2 positions Daikin to respond effectively to market needs. The facility’s combination of automation, skilled workforce, and sustainability initiatives ensures that the company can meet current demand while preparing for future growth opportunities.
In conclusion, the $28.6 million investment in Factory 2 demonstrates Daikin Australia’s unwavering commitment to local manufacturing, innovation, and job creation. By producing Australian-designed and built products that leverage local materials and expertise, the company not only strengthens its competitive position but also contributes meaningfully to the Australian economy. With advanced technology, a highly skilled workforce, and a focus on sustainability, Factory 2 marks a significant milestone in Daikin Australia’s ongoing journey to deliver high-quality, locally manufactured HVAC solutions for customers nationwide.
Source link: https://www.daikin.com/
