Daikin prepares to invest 100 million € in Türkiye

Japan-based climate control brand Daikin plans to invest approximately 100 million euros in Türkiye, which it has positioned as the “production hub” for its Middle East and Africa operations.

Daikin’s factory in Türkiye has become a regional export center for the brand, serving the Middle East, Africa, and Europe thanks to its production capacity and engineering infrastructure. Having entered the Turkish market by acquiring Airfel, Daikin has strengthened its local manufacturing capabilities through specialized products developed for this market, while also contributing significantly to exports.

Hasan Önder, President of Daikin Türkiye for the Middle East and Africa region, shared the company’s regional strategies, Türkiye’s role in the climate control industry, and its upcoming investment plans as part of the “Business World Talks” series.

Önder stated that sales in the climate control sector have been very strong in 2024, driven by the effects of global warming and preemptive demand due to inflation expectations. He added that 2025 is progressing in parallel and that Daikin is 22% ahead of its annual targets after the first ten months.

Pointing out that Europe is experiencing stagnation, Önder emphasized that air conditioner ownership in Türkiye is only around 15–20%, showing the country’s high growth potential in the climate control sector.

He projected that split air conditioner sales in Türkiye would reach around 2.2 million units by year-end, while noting a contraction in the boiler market due to the emergence of heat pumps and other eco-friendly alternatives.

Önder underlined the strong activity in the central systems market, particularly in VRV and applied chiller products, both of which have shown significant growth. He emphasized that Daikin’s VRV products are now produced in Türkiye, with a portion of them being exported to the Middle East, Gulf, and Africa.

Önder believes that within the next five years, most products used in these regions will be exported from Türkiye, adding that Türkiye’s HVAC industry is currently 5% ahead in exports.

Contrary to Europe’s slowdown, Önder noted rapid growth in Gulf countries, particularly in the UAE, Qatar, Oman, and Kuwait.

“Thanks to its logistic advantage and strategic location, we started producing many products in Türkiye”

Highlighting that Daikin Türkiye has been the export champion of Türkiye’s HVAC sector for seven consecutive years, Önder said:

“Last year we closed with 700 million euros, 400 million of which came from exports. This year we set an ambitious export target of 438 million euros, and we expect to close 2025 with around 820 million euros in revenue, including 450 million euros in exports.”

He recalled that Daikin entered Türkiye in 2011 by acquiring Airfel with a $260 million investment, later establishing a split air conditioner factory with a production capacity exceeding 1 million units, mainly for exports to Europe.

“Thanks to its logistic advantages and strategic location, we began manufacturing many products in Türkiye,” Önder said.

At the 163,000-square-meter plant in Hendek, the company produces air handling units, fan coils, boilers, and split air conditioners.

Önder also announced a new local investment — the Airfel-branded high-efficiency device developed for Africa and specific regions of Türkiye. He emphasized that this was the first locally developed product under Daikin Türkiye’s initiative and not part of Daikin’s global portfolio. The company expects around $100 million in exports from this new product.

“Daikin Türkiye is currently the only main hub in the region”

Önder stressed that Daikin Türkiye is the strongest production center in the region, elaborating on the company’s efforts to position Türkiye as the main hub for the Middle East and Africa:

“Currently, Daikin Türkiye is the only main hub in the region. Producing here gives us a major export advantage. However, competition is pushing every country to insist on local production. While localization is a challenge, we promote Türkiye’s advantages wherever possible.
Türkiye still offers a skilled labor force, though wages in foreign currency terms have risen and are now close to those in Poland, where we used to produce 20% cheaper. This could affect investments temporarily, but I believe it’s a passing situation.”

“With Airfel Vibe, we are entering a new investment phase”

Önder pointed to new product investments, noting that the Airfel Vibe series has been fully developed through local production.

“We have started producing cost-efficient split air conditioners. Airfel Vibe, with its high performance and energy efficiency, will play a key role in both domestic and export markets,” he said.

Recently, Daikin Türkiye increased its capital by 4.3 billion TL, a move Önder described as crucial for maintaining control over capital and cash flow during investments.

The company currently employs 2,000 people in Türkiye and aims to reach 2,500 employees by 2030. Women currently represent 38% of the workforce, and Daikin Türkiye plans to increase this to 50% by the 2030s.

“The climate control sector will continue to grow rapidly”

Önder said that growth in the HVAC sector is ongoing and resilient to geopolitical risks, encouraging companies to continue investing.

He noted that Daikin, with a global turnover of nearly $30 billion, continues to expand both vertically and horizontally, acquiring multiple companies worldwide.

“Nearly all Gulf countries have launched ‘Vision 30’-style initiatives, setting strategic investment goals. Nations such as Qatar, Kuwait, Oman, Saudi Arabia, and the UAE forecast major growth and diversification beyond oil, investing heavily in tourism, conferences, and sports.
This keeps their markets dynamic and creates growth opportunities. Dubai, for instance, plans to double its population. As the market itself grows, so does every related investment.”

Önder also highlighted Africa’s long-term potential, citing its strong natural resources and increasing control over its wealth.

“Africa will be a very promising market — both for Turkish investors and for us. I still see both Africa and the Gulf as very dynamic regions,” he said.

“We will increase our investments in Türkiye”

Önder revealed that Daikin has established a factory in Saudi Arabia to strengthen regional production and supply capacity, while also planning to increase investments in Türkiye to meet growing demand.

“Türkiye is far ahead in terms of human capital, systems, and factory technology. Therefore, we will continue to expand our investments here and prepare for market growth.
In this context, an investment of over 100 million euros in Türkiye seems very likely.
We cannot achieve the same momentum in the UAE or Saudi Arabia. Türkiye is set to become Daikin’s regional export hub, which means new investments will flow into Türkiye over the next five years.”

He concluded by emphasizing Daikin’s strength as a 100-year-old Japanese brand and global industry leader:

“Daikin is an exceptionally strong and innovative company leading the global HVAC sector. As Daikin Türkiye, we compete within the group — and as Turks, we move faster and persist until our engineers solve every issue.
Our 2025 target was 500 million euros, but now we are talking about 820 million euros. This success belongs not only to top management but to all our employees.
We aim to further empower them through training and, together, contribute at the highest level to Türkiye’s economy.”

Source : Ekonomim, November 5, 2025. Article translated by Advantis Conseils Turquie