Daikin Australia opens new Sydney factory

Daikin Australia has announced the opening of a new $28 million factory in Chipping Norton, Western Sydney.

The company says it is reinforcing its long-term commitment to Australian manufacturing, innovation and jobs, with the Factory 2 expanding Daikin’s capability to produce customised air handling units and rooftop packaged air conditioners as part of its global ‘local products for local markets’ strategy, while also providing the potential to expand ducted indoor production to cater to future demand increases.

Hideaki Furihata, Managing Director of Daikin Australia, said the expansion reflects confidence in Australia’s market strength and skilled workforce.

“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,” Furihata said. “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.”

Construction began in early 2024 and concluded in August 2025, with support from a grant through Investment NSW.

The factory incorporates autonomous mobile robots, expanded solar photovoltaic generation and digitalised sale-to-manufacture processing to improve efficiency and reduce environmental impact. Beyond the new factory, Daikin has 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. Designed for local conditions, the products utilise 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 provided over 60 full-time jobs across production, research and development and support functions.

Nicholas MacDonald, Manufacturing General Manager at Daikin Australia, said Factory 2 positions the company for long-term growth.

“The new factory gives us room to innovate and increase our locally manufactured offering in key residential and commercial segments,” he said. “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.”

Image: Supplied