news release
November 26, 2024
Management/Finance
US Copeland and Daikin establish a joint venture
Deploying inverter swing rotary compressors to the United States
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Copeland (Headquarters: St. Louis, Missouri, USA; hereafter, Copeland), a leading global company in the air conditioning industry, and Daikin Industries, Ltd. will establish a new joint venture to supply Daikin inverter swing rotary compressor technology to the US residential air conditioning market through Copeland. Daikin's advanced inverter-swing rotary compressors expand Copeland's product portfolio and greatly contribute to reducing energy consumption, cost, and improving reliability of air conditioners. The joint venture is expected to commence operations during the first half of 2025 after receiving regulatory approval.
This partnership leverages the air conditioning market leadership, deep industry expertise, and strong technical support from Copeland, which manufactures and sells air conditioning compressors, and Daikin's proven inverter swing rotary compressor technology. The two companies will work together to provide the most efficient solutions for US residential air conditioning manufacturers according to their specific applications and needs. This collaboration will accelerate the transition from fossil fuel-based heating to highly energy-efficient heat pumps in the US, and at the same time play an extremely important role in meeting strict environmental regulations.
Copeland Inc. will have a majority stake in the joint venture to be established in the United States, and will be responsible for the sale and manufacture of inverter swing rotary compressors in the US residential air conditioning market. As a first step, we will provide test samples of Daikin's inverter swing rotary compressors to Copeland's US customers. Copeland will facilitate rapid adoption and evaluation of compressors by providing sales and technical support. In the future, we plan to consider establishing a dedicated plant in the Americas in order to provide a stable supply of high-performance compressors.
[Expansion of Copeland's product portfolio]
With this agreement, Copeland's compressor product range for the US residential air conditioning market will be expanded, making it possible to respond to a wider range of customer needs as the industry moves towards decarbonization and heating electrification progresses.
Comment from Copeland CEO Ross B. Shuster (Ross B. Shuster)
By further expanding and complementing Copeland's product portfolio, we will be able to provide a wide range of compressor technologies to meet more diverse needs as the market changes in search of high levels of energy efficiency, low global warming potential (GWP) refrigerants, and heating electrification. By adding Daikin's inverter swing rotary compressor technology to our established sales network, customer relationships, and high-quality service, we support customers in designing and providing highly efficient air conditioning systems that meet both energy and sustainability issues.
[Promoting Daikin's US Business Strategy]
This partnership is in line with Daikin's strategic management plan “FUSION25,” and aims to spread and expand Daikin technology in the US residential air conditioning market.
As federal and state governments promote environmental policies and plans to further strengthen energy conservation regulations by 2031, demand for efficient and cost-effective air conditioning systems is increasing more than ever. Additionally, the shift from fossil fuel-based heating to heat pumps is accelerating, and demand for energy efficient solutions is also increasing.
By accurately controlling the motor speed according to the operating conditions of the air conditioner, inverter technology minimizes power consumption, enables fine-grained temperature control, and satisfies both environmental and regulatory requirements. We believe that inverter compressors are an essential technology for the energy transition in the United States. Daikin sees the strengthening of environmental regulations in the United States as an opportunity, and by cooperating with Copeland, we will provide advanced inverter technology, which is Daikin's strength, to more people.
Comment from Masanori Soga, Chairman and CEO of Daikin Industries, Ltd.
By further expanding and complementing Copeland's product portfolio, Daikin will play an important role in the design and production of inverter swing rotary compressors as the market changes in search of high levels of energy efficiency, low GWP (global warming potential) refrigerants, and heating electrification. By combining Copeland's sales and service capabilities, we aim to supply inverters and swing rotary compressors to the US residential air conditioning market and spread inverters widely throughout the market.
[Key benefits of the partnership]
Decarbonization and provision of sustainable solutions
As efforts toward decarbonization and sustainability in the air conditioning industry progress, we will continue to provide customers with reliable, high-performance products that meet these needs. Both companies will work to advance energy efficiency and CO2 reduction to meet changing regulations and market demand for more sustainable heating solutions.
Expanding the product range
Through this collaboration, we will provide highly efficient inverter swing rotary compressors for residential air conditioning in the US to meet the diverse needs of American customers.
Potential for future expansion
The partnership also includes plans to establish a new manufacturing plant in the Americas. We will establish a system that can respond to growing demand and future market changes.
[Promotion of energy efficiency and decarbonization]
As the air conditioning industry places greater emphasis on energy efficiency, decarbonization, and sustainable solutions, the agreement between Copeland and Daikin is timely. Demand for advanced heat pumps is increasing as dependence on heating equipment using fossil fuels decreases. Inverter swing rotary compressor technology is known for its reliability, strong applicability, and excellent efficiency, making it suitable for the growing heat pump market, particularly residential applications where decarbonization and energy efficiency are paramount.
[About Copeland]
As a leading provider of sustainable heating, cooling, refrigeration, and industrial solutions, Copeland helps commercial, industrial, refrigeration, and residential customers reduce carbon emissions and improve energy efficiency. Copeland is tackling issues such as climate change, population growth, electricity demand, and complex global supply chains through innovations that promote the energy transition, accelerate the introduction of low GWP refrigerants and natural refrigerants with low environmental impact, and protect the world's most important products through an efficient and sustainable cold chain. Copeland has more than 18,000 employees and is present in more than 40 countries. Our global presence allows us to serve customers anywhere in the world and respond to challenges with scale and speed. Our industry-leading brands and diverse portfolio deliver innovations and technology proven in over 0.2 billion implementations worldwide. Copeland is working together to create sustainable solutions that improve the lives of current and future generations and protect the planet. For more information, visit copeland.com.
[About Daikin]
Daikin, founded in Osaka in 1924, is a leading air conditioning company with over 100 production sites around the world and operating in over 170 countries and regions. We provide comfortable spaces and contribute to people's health by improving the indoor air environment in various climates through the air conditioning business, which plays a role as an essential social infrastructure for daily life. Meanwhile, global demand for air conditioning is predicted to triple by 2050, and the increase in demand for electricity associated with the use of air conditioning has become a major issue. Daikin's mission is to suppress the effects of global warming as much as possible while providing a safe, secure, comfortable, and healthy air environment. Daikin, which aims to be a “company that gives answers with air,” will continue to provide products and services to the world that meet diverse needs and cultures. Please see daikin.co.jp for details.
Contact information for press inquiries
Daikin Industries, Ltd. Corporate Communication Office
Head Office: 1-13-1 Umeda, Kita-ku, Osaka-shi, 530-0001 (Osaka Umeda Twin Towers South)TEL (06) 6147-9923 (dial-in) Tokyo Branch Office 2-2-1 Yaesu, Chuo-ku, Tokyo 104-0028 (Tokyo Midtown Yaesu Yaesu Central Tower)
TEL (03) 3520-3100 (dial-in) E-mailprg@daikin.co.jp
The information published in the news release is current as of the date of publication.
Please note that changes are subject to change without notice.
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