ANI
03 Oct 2022, 19:55 GMT+10
Tokyo [Japan], October 3 (ANI): Japan's Daikin which has always relied on China for air conditioner parts in the last decade, got fed up with China's long zero Covid policy and decided to dump China for AC parts.
Daikin Industries has planned to dump China as it has failed to supply parts for the manufacturing of Air conditioners, reported The Singapore Post.
Daikin's decision to find an alternative has caused a huge embarrassment to China even as relations between Japan and China completed 50 years.
In February, China tightened chip supply after it imposed a lockdown in Suzhou in Jiangsu province. The tough step had a negative impact on the chip supply and fuelled the global chip shortage, reported The Singapore Post.
The lockdowns to contain COVID spread in Shanghai this year led to a fall in the production of some parts, which impacted Daikin's production as well.
The adverse impact on Daikin's production due to China's zero-Covid policy made the company realize the need of having contingency suppliers in other regions, reported The Singapore Post.
With the rise in temperature all over the world, the Japanese tech firm wants to capture the AC market and hence it announced that it would start making air conditioners without Chinese-made parts as early as March 2024. By depending on China for chips and other items, Daikin doesn't want to suffer financial losses.
For the past few years, Daikin has been fully relying on China for AC parts. Back in 2020, 35 per cent of its air-con components were imported from China, reported The Singapore Post.
However, this import record decreased to 20 per cent ever since Shanghai implemented COVID-19 lockdowns. Because of this, Daikin said it now needs contingency suppliers outside China. But, valves, large sheet metal, and other similar parts will still be Chinese-made.
Meanwhile, Daikin explained that it would purchase other AC parts from Japan-based manufacturers, as well as other companies located in Southeast Asia, reported The Singapore Post.
A report by Nikkei stated that Daikin has developed a way to produce a crucial chipmaking chemical using raw materials from Mexico, an opportunity to reduce reliance on China.
Basically, Daikin has developed a purifying process that paves the way for producing hydrofluoric acid from Mexican fluorite minerals, which is less pure than Chinese fluorite, reported The Singapore Post. (ANI)
Get a daily dose of South East Asia Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to South East Asia Post.
More InformationNEW LONDON, Connecticut: Video footage taken deep in the Pacific Ocean provided the first detailed view of three World War ...
CUSTER STATE PARK, South Dakota: As part of an annual effort to maintain the health of the species, which has ...
TASHKENT, Uzbekistan: Uzbek authorities said a powerful explosion on September 28 at a warehouse near Tashkent's airport killed one person ...
TALLAHASSEE, Florida: The Florida Lottery said this week that the second-largest lottery winner in U.S. history has come forward to ...
LONDON, UK: This week, the Global Financial Centers index showed that New York remains the world's leading financial center, with ...
KAOHSIUNG, Taiwan: In a significant milestone for its defense capabilities, Taiwan has unveiled its first domestically developed submarine. Although it ...
NEW YORK, New York - The Nasdaq defied a general sell-off on U.S. equity markets Monday, as the new quarter ...
NEW YORK, New York - The U.S. dollar jumped sharply on Monday, extending its recent months-long rally.The euro crumbled to ...
CHICAGO, Illinois: On September 29, the union representing United Airlines' pilots said its members had ratified a new four-year contract, ...
SHANGHAI, China: Chinese officials report that 100 million people are traveling daily during the ongoing Golden Week holiday. Three times ...
STOCKHOLM, Sweden: Swedish lithium-ion battery producer Northvolt announced this week that it would build a $5.2 billion gigafactory in the ...
SACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food ...