Daikin Applied Americas, which manufactures commercial HVAC systems, recently announced plans to expand its Faribault, Minnesota manufacturing facility. The Japanese air conditioning and heating systems maker will invest $40.3 million to increase production, creating an estimated 132 jobs as part of the project. The company plans on purchasing an existing 300,000-square-foot warehouse and transforming it into a state-of-the-art production facility.
The Minnesota Department of Employment and Economic Development (DEED) is providing a $750,000 loan from the Minnesota Investment Fund, and a $1.6 million grant from the Job Creation Fund to help support the expansion and the infusion of new jobs. The company reportedly looked at additional locations in the U.S. and Mexico before selecting Faribault. According to DEED officials, Daikin chose Minnesota because of the skilled workforce and legacy of success in Faribault and the nearby Owatonna facility. The two locations currently employ nearly 900 workers.
Through the Job Creation Fund, DEED has awarded $41.4 million to 91 expansion projects throughout Minnesota since January 2014. These projects have generated more than 5,500 full-time jobs. Additionally, the Minnesota Investment Fund, which awards loans to businesses for improving operations and hiring more workers, has reportedly helped generate 1,175 new positions to date.
Osaka-based Daikin Industries has more than 70,000 employees throughout its 90 production sites around the globe. As the world’s largest HVAC manufacturer, it posted revenue of more than $20 billion last year.
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