DAIKIN Europe has bought all shares in Svenska Daikin A.B, its distributor in Sweden, to realise its heating expansion plans.
Svenska Daikin A.B., headquartered in Stockholm, has been a distributor for the Japanese air conditioning manufacturer for 25 years with sales of £5.2m in 2007.
Daikin Europe N.V. completed the acquisition on January 31, and from this date Svenska Daikin A.B. changed its name to Daikin Sweden A.B.
Daikin said the purchase was a major step to accelerate its heating business around the world. Sweden is considered to be the largest heat-pump market in Europe in terms of heat pump type hot water heating using such heat sources as groundwater and air. The market of hot water heaters using air-source heat pump, are expected to total £95m for the year 2012 (three times the market of 2006).
In Europe, hot water heating systems using fossil fuel boilers that directly burn oil and natural gas are rapidly being replaced by systems using groundwater-source or air-source heat pumps. Daikin has entered the hot water supply and heating markets using energy-saving heating hot water supply systems.
With the establishment of two new sales offices in Gothenburg and Malmo, Daikin intends to promote development of dealer network specializing in heating systems by offering total systems for heating and air-conditioning centered on Altherma TM, a hot water heating system using heat pump technology.
With the acquisition of its new company, the Daikin Group is aiming to raise sales to £18m by 2010.
A spokesman for Daikin Europe said 'Next to a further strengthening of its position in the ac market (both in direct expansion and applied systems), Daikin will especially focus on developing its position in the air-to-air and air-to-water heat pump market.
'As a new representative of Daikin's strategic move in the heating industry, Daikin Sweden A.B. is the first heating affiliate of the group'.
The 10 employees of Svenska Daikin A.B. are now part of Daikin Sweden A.B.
Mr Koen Matthys will be appointed as managing director of Daikin Sweden A.B. and will be supported in his role by Olof Elvander.
Daikin has bought out several of its distributors around the world including all of its UK distributors, except one - Space Air Conditioning.