Daikin assures Department of Trade and Industry on Philippines operations

MANILA, Philippines — Japanese air-conditioning giant Daikin has expressed to the government its strong interest to further expand its business in the Philippines, the Department of Trade and Industry (DTI) said.

DTI said it received a letter from the head office of Daikin Industries Ltd. in Japan, indicating the firm’s position to strengthen and expand their business operations in the country.

Daikin, through local unit Daikin Airconditioning Philippines Inc., has been present in the country since 2009. 

“The Philippines is a very important market for Daikin and has a big room for further expansion. We will continue and strengthen our action to expand business in the Philippines,” Daikin Industries’ senior executive officer Yoshihiro Mineno said. 

Mineno said the Japanese firm currently does not have any complaints about the investment climate in the country.

Trade Secretary Ramon Lopez expressed optimism over Daikin Industries’ intention, saying the government looks forward to the company’s expansion projects.

“We welcome investors who wish to join the country’s growth story, and contribute in our mission to provide jobs to Filipinos and share the prosperity to all,” Lopez said.  

Mineno’s letter to DTI aimed to clarify  the recent comments made by local officials from Daikin Philippines who said the Philippines is not on the firm’s radar for a production base facility at the moment given its small market and less attractive incentives packages. 

Daikin is starting commercial operations this year of an air conditioner production facility in Vietnam. In Southeast Asia, the company also has production base in Thailand and Malaysia. 

Daikin, however, expects sustained growth in the Philippines given the country’s robust economy and the government’s aggressive infrastructure program. 

Daikin Philippines president Lee Wai Kok earlier said the company is targeting a sales growth of between 40 and 50 percent for its 2018 fiscal year from 2017’s projected sales of P3.3 billion, buoyed by the country’s  booming economy which is enabling more consumers to buy air-conditioning units. 

“The Philippine market has great potential with high GDP growth and ideal demographic situation. Middle income class is expected to increase rapidly in next 10 years and construction is rising with the Build Build Build program. So with that, there is great opportunity for air-conditioning in the Philippines,” Kok said.

Daikin is opening three additional branches this year to expand customer reach and dealer network nationwide.