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CORPORATE NEWS [latest news list] May 16, 2003
Daikin Industries, Ltd.
Public Relations Department
Daikin to Establish a New Air Conditioner Plant in Czech Republic
Strengthen production force in growing European market of air conditioning

Daikin Industries, Ltd. (Osaka, Japan, Hiroyuki Kitai, president & COO) announced plans to establish Daikin Industries Czech republic s.r.o producing air conditioners in Pilsen, Czech Republic in June 2003. The new company will be the second manufacturing subsidiary to produce air-conditioning in Europe next to Daikin Europe N.V. in Belgium. Daikin aims to strengthen air conditioners production structure in Europe by reducing production cost and shortening products supply lead-time.

The new company will be set up with an investment of approximately 1.3 billion yen and its commercial operation is due to start in April 2004. It will be the main plant in Europe for mass production models requiring further cost reduction such as cassette type and duct type air conditioners indoor units. It will also be a site to supply parts used for air conditioners production in Europe.
At present, Daikin Europe N.V. (Ostend, Belgium, established in March 1972) operates manufacturing and sales of air conditioners in Europe. By this establishment of the new company, the production of cassette type and duct type air conditioners indoor units will be transferred to the new plant while Daikin Europe N.V. will shift its emphasis to key products of high value such as commercial-use packaged air conditioners and out door units of multi-air conditioners for buildings.
Combined production capacity of both companies (for air conditioners indoor and outdoor units) is to be increased from 200,000 units to 500,000 units per year.
Furthermore, the shift of production from our global production bases like Thailand to this new plant will be investigated.

The air conditioning market in Europe continues double-digit growth to be approximately 550 billion yen in 2002 (approximately 15% of the worldwide demand by our estimation) and has good prospects to reach 600 billion yen in 2005.
Our sales of air conditioners in Europe is approximately 90 billion yen (figure of fiscal year ending March 2003; consolidated basis) which is approximately 34% growth compared with the previous year.
Daikin Europe N.V. precedes acquisition of distributors and dealers positively to intensify sales force in Europe. Sales companies have already been established in Germany (July, 1998), Austria (July, 1999), Spain (March 2000), Poland (February 2001) and Italy (May, 2002). 2 distributors in U.K. are to be acquired in this July.
Thus, together with sales companies in France and Belgium, Daikin group is poised for direct sales system in the main air conditioning markets in Europe (8 countries).

[Outline of the New Company]
1) Name: Daikin Industries Czech republic s.r.o
2) Location: Pilsen industrial complex, Czech Republic
3) Capital: 10 million euro (approx. 1.3 billion yen)
4) Share Distribution: Daikin Industries, Ltd.: 50%; Daikin Europe N.V.: 50%
5) Date of Establishment: June, 2003
6) Start of Production: April, 2004
7) Investment: Approx. 1.3 billion yen
8) Product Lineup: Cassette type air conditioner indoor unit
and duct type air conditioner indoor unit
9) Production Capacity: 300,000 units per year
10) Number of Employees: Approx. 500 (plan for 2005 fiscal year)

[Outline of Daikin Europe N.V.]
1) Name: Daikin Europe N.V.
2) Location: Ostend, Belgium
3) Capital: Approx. 4 billion yen
4) Share Distribution: Daikin Industries, Ltd.: 100%
5) Date of Establishment: March, 1972
6) Product Lineup: Commercial-use air conditioners
7) Production Capacity: 200,000 units per year
8) Sales: Approx. 90 billion yen
(figure of fiscal year ending March 2003)
9) Number of Employees: Approx. 1,500

  For more information, please contact
     Daikin Industries, Ltd.
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