Heating, ventilation and air conditioning solutions company Daikin Industries, which has been operating in Australia for the past 55 years, has opened a $28.6 million local manufacturing facility in Chipping Norton, NSW.
The new Factory 2 expands its capability to produce customised air-handling units and rooftop packaged air conditioners as part of its global ‘local products for local markets’ strategy.
The factory incorporates autonomous mobile robots, expanded solar photovoltaic generation and digitalised sale-to-manufacture processing to improve efficiency and reduce environmental impact.
Daikin has reportedly brought printed circuit board manufacturing onshore, achieved Australian Made certification for most locally-built products and established a skills dojo led by Daikin Japan-trained experts to develop its manufacturing talent.
All ducted systems, rooftop packaged units and air-handling units produced in Australia carry the Australian Made mark.
The company says the products have been designed specifically for local conditions and draw much of their value from Australian-sourced parts and assembly, supporting local suppliers and ensuring faster service and spare-part availability.
Initially expected to create 45 roles, Factory 2 has already delivered over 60 full-time jobs across production, research and development and support functions.
The company employs more than 700 people across the country, including 240 who live within 10 kilometres of its Chipping Norton headquarters, and works with over 20 local suppliers.
Construction on the facility began in early 2024 and concluded in August 2025, with support from a grant through Investment NSW.
“Our decision to invest locally stems from Daikin Australia’s strong market position, our confidence in our people, technology and network, and our plans to broaden our range of locally designed and produced products,” Daikin Australia managing director Hideaki Furihata says.
“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.”
Daikin Australia’s manufacturing general manager Nicholas MacDonald added that Factory 2 gives the company added capability to increase the company’s locally manufactured offering across key residential and commercial segments.
“Combining advanced automation, a strong supplier network and continuous skills development means we can respond faster to customer needs and keep manufacturing strength here in Australia,” MacDonald says.
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