HOUSTON — Daikin Industries Ltd. announced that its board members have approved an expansion plan for its Goodman operations in the United States. Over the next several years, Daikin will be building a new state-of-the-art business campus that consolidates the current manufacturing and logistics operations to a location outside of Houston. The new campus is currently projected to be operational mid-2016. This commitment of approximately $417 million represents the largest single investment since the founding of the Goodman organization over 40 years ago. The construction is planned to commence in the coming months.

The new facility, when finished, will include one of the largest and most technologically advanced HVAC manufacturing facilities in the country, said the company.

The consolidated campus will enable Daikin to manufacture in one location its full range of ducted residential and light commercial products as well as various ductless products that are currently imported from other inter-company business units located outside North America.

Daikin noted that ductless systems have gained rapid acceptance in the North American marketplace and have become one of the fastest growing HVAC market segments.

Texas and Tennessee operations that will be relocated to the new business campus include engineering, logistics, procurement, manufacturing, and marketing. Manufacturing operations at this new campus will consist of residential and commercial heating and cooling systems marketed primarily under the Daikin, Goodman®, and Amana® brand names.

“The new business campus will provide many outstanding benefits to our customers,” said Takeshi Ebisu, president and CEO of Goodman Manufacturing Co. L.P. “The operational efficiencies we achieve will be reflected in the superb quality of our high-efficiency, energy-saving heating and cooling systems. We are excited about the outstanding value that this move will bring to our current and future customers. As the leading global HVAC manufacturer, Daikin expressed a strong, long-term commitment to its customers in North America by constructing this new business campus.”

“Our successful growth has fueled the need for additional manufacturing capacity. The new campus will allow us to dramatically increase our production efficiencies and enable us to continue to serve our customers better than ever before from the leading market position that we hold today,” said Sam Bikman, SVP global supply chain for Goodman. “The integration of our engineering, procurement, logistics, manufacturing, and marketing functions at the same location will facilitate and expedite our ability to respond proactively to customer needs.”

Daikin said this consolidation reflects its global commitment to local, in-country, manufacturing.

Goodman Sales and Distribution operations, Quietflex Manufacturing Company L.P. (a leading manufacturer of flexible duct and fiberglass products), Daikin Marine Container, and other Daikin operations are not impacted by the consolidation.

For more information about Daikin Industries, visit www.daikin.com.

For more information about Goodman, visit www.goodmanmfg.com.

Publication date: 1/19/2015

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