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Daikin intends to substantially expand in Egypt

August 2020

'Success Daikin achieved in Egypt can be used as springboard to future developments'

Q: In opening the new facility in Egypt, how will Daikin lay the groundwork for business development that aggressively competes for large-scale projects?

Mr. Sherif Soliman, General Manager: We manufacture a diverse range of HVAC-R products, spanning from the smallest 1-Ton split system to the largest 3,000-Ton chiller series, which also includes other solutions like controls, refrigerants, compressors and offsite modular solutions. With our diversified portfolio of offerings, Daikin is able to provide total solutions across a key range of buildings and facilities such as villas, commercial buildings, towers, stadiums, data centres and district cooling applications. This also covers key market verticals including residential, hospitality and health sectors.

By leveraging the local knowledge and investment expertise of our partner, BPE Partners, and collaborating with the Daikin MEA headquarters in Dubai, Daikin Egypt is keen to expand and promote all solutions to any application type or size.


Q: What are the strategic plans and future developments that Daikin MEA is planning in Africa and Egypt in particular?

Mr. Shunichi Mushiake, Managing Director: At present, we are now looking into increasing our visibility and presence through the opening of more local offices and affiliates across major countries in the Middle East and African (MEA) region. We have found considerable success in this effort, which has prompted us to set our sights towards further expansion.

The opening of our new facility in Egypt is aligned with our Fusion 20 management plan of penetrating each region by establishing local sales companies and offices. Since opening Daikin Egypt four years ago, the company has managed to achieve remarkable growth, which has allowed us to position ourselves into becoming one of the most significant players in the Egyptian market today--marked by an active presence, robust setup and operations.

With energy-saving products ranging from residential, commercial to industrial use, the company is poised to substantially expand its presence in Egypt. The success that we have achieved across the Egyptian market can be used as a springboard to future developments in the MEA region.


Q: What are some of the advantages that clients in Egypt will benefit from in the years ahead as Daikin pursues expansion plans throughout Africa? 

Mr. Sherif Soliman : The Daikin Egypt facility was established in line with the move to further consolidate our presence and operations in the local markets--from sales to aftermarket support. We believe in the potential opportunities that the Egyptian market represents for us.

The public sector has now started to move towards keying in a reduction on electrical energy subsidies, driving in a growing preference for energy efficient products, and companies with technologies will lead such trend. Daikin remains steadfast in its commitment towards extending key support and guidance to different markets, especially in the move to implement more energy efficient solutions like the use of inverter technology and green refrigerants across the company's full product range--from splits, VRV, chillers and airside solutions.


Q: What opportunities are you seeing in Egypt?

Mr. Shunichi Mushiake : The Egyptian market has always proven itself to be a highly resilient market; showing us clear growth in terms of new developments across real estate, offices, commercial buildings, infrastructure, tourism, hospitality, and health sectors.

Right now, Egypt has helped pave the way for large-scale urban development projects and consequently, substantial growth is foreseen in the air conditioning market. By 2050, the current population of 23 million people in Greater Cairo is projected to climb to over 40 million. The rapid increase in energy cost has prompted consumers and owners to invest in highly efficient products, which can save up to 50 per cent during the product life cycle.


Q: How do you aim to address the demand within different emerging sectors?

Mr. Sherif Soliman : We have been spreading our unique technologies in VRV and Chiller systems in the region and are now working on the ‘Inverterization’ of the entire product range right from splits till Chiller systems, and the use of new green refrigerants like R-32. We have seen increasing acceptability for green products and with government regulations for energy efficiency coming in place, it will further fuel the growth in the market.

Daikin continues to remain fully committed in providing key markets with highly efficient products that have been designed to address growing customer needs and expectations.

Our excellent performance has given us the confidence in predicting a continuing demand for highly efficient products using inverter technology. We are also seeing continued increase in demand in residential projects and replacement (Retrofit) projects across hospitality and service sectors.


Q: How do you plan to maintain yourself as the regional market leader with regards to introducing climate friendly refrigerants?

Mr. Sherif Soliman : The countries that ratified the Kigali amendment to reduce the global warming impact of HFC refrigerants are now working to replace commonly used refrigerants with those having a lower environmental impact. To show our support for this initiative, Daikin has provided free access to its patents covering HVAC equipment using the low GWP R-32 refrigerant. From a regional perspective, Daikin has also expressed its support for the United Nation's (UN) continuing efforts to assist regional manufacturers in their evaluation of low GWP alternative refrigerants suitable for the region.

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