Daikin Industries Thailand Chairman Toshio Nakano

In tropical Southeast Asia, the demand for climate-control systems across the region has remained strong. Daikin Industries, the leading maker of air conditioners in Japan, came to Thailand not only to tap a very lucrative Asian market but also to strengthen its global position.

‘‘Daikin Industries Thailand, or DIT, was established in 1990 partly because of the yen revaluation in Japan during the mid-1980s. Daikin would have lost its competitive edge if it manufactured only in Japan. Overseas production was critical for the company to survive,’’ DIT Chairman Toshio Nakano recalls.

DIT, which is involved in product development, manufacturing, sales operation and distribution, has since supplied its products around the world. It has exported to various countries in Oceania, Asia, the EU, Middle East and Japan, which means DIT is a production center for the world.

‘‘When I first came to Thailand in 1973, demand for air conditioners had just started growing in the country. Today, there are still many households in Thailand and the ASEAN region that lack climate-control systems. DIT’s business grew more than 20 percent in 2004 and I feel there is great potential to expand our business in this region of the world,’’ Nakano points out.

Since the Japanese market is highly saturated with air conditioning products, Daikin has steered its strategy toward overseas markets for future growth. Daikin has achieved the No. 1 share in Japan and has set its sights on becoming No. 1 in the world.

In 2004, the group reported revenues of $6.7 billion and profits of $550 million. ‘‘In business, there are always challenges. As every cost, such as labor costs, has been rising, it is our most important task to maintain the development speed, quality improvement and continuous cost reduction. We, of course, care for the global environment in these operations. Therefore I feel our production in Thailand will continue to be globally competitive,’’ says Nakano.

Its premium products have allowed Daikin to find customers who are ready to spend more on the top-end cooling systems — a situation that the company has attributed to the strength of its brand and long history in the region.

‘‘Daikin’s group target is to be the No. 1 brand in the world. To achieve our goal, we must become No. 1 region by region. My immediate goal for Daikin is to be the market leader in ASEAN and Oceania. We must continue supplying the best quality products and meet the future needs of consumers in every market. This is my dream,’’ says Nakano.

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