Daikin and McQuay Open $50 Million Applied Development Center to Develop Sustainable HVAC Solutions for Markets Worldwide

Minneapolis, MN (Vocus) May 20, 2009 -- Following its grand opening on May 20, 2009, the new Daikin (http://www.daikin.com/) McQuay (http://www.mcquay.com/) Applied Development Center has opened its doors in Plymouth, Minnesota, to research and development of innovative, high efficiency heating, ventilation and air-conditioning (HVAC) technologies that support the environment and provide reliable solutions for customers worldwide. The purpose of the new center is to develop and test advanced chiller, compressor and other HVAC technologies to reduce energy consumption and ultimately the carbon footprint of the buildings where they will be used.

“In 2006, McQuay International became a member of Daikin Group, creating a tremendous synergy to serve residential, commercial, institutional and industrial heating, ventilation and air conditioning (HVAC) markets as the industry leading solution provider globally,” said Katsuhiko Takagi, senior executive officer, Daikin Industries, Ltd. and chairman and CEO of McQuay International. This synergy represents the combined strengths of the two companies. Daikin is a leader in using technologies that help preserve the environment, such as those that conserve energy, and deliver high reliability to its customers. McQuay is a leader in engineered, flexible applied systems that deliver high efficiency for commercial, institutional and industrial buildings. Added Takagi, “This Applied Development Center will allow the Daikin Group to fully leverage these strengths and accelerate the development of applied products that support the environment, energy savings, innovation, leadership and the best customer comfort.”

The 49,000-square-foot (4,600-square-meter) research center, located at McQuay world headquarters in Plymouth, Minnesota, is the world’s most advanced facility for heating, ventilation and air conditioning (HVAC) research and development, according to McQuay. The facility includes six test cells, with space for two additional cells in the future, that will facilitate the development of air- and water- cooled chillers, compressors and heat pumps as well as new air-conditioning systems. Included are a worldwide range of electrical voltages/frequencies, capacities for testing up to 1,800-ton systems (a measure of cooling load), and a range of procedures for testing ambient conditions (temperature and humidity). “The Applied Development Center can simulate building, electrical and climate conditions of any location throughout the world, allowing the basic design development of new products to be centrally located in this facility,” said Takenori Miyamoto, general manager of the Applied Development Center. “These ‘global models’ are then arranged into a suitable design to match market requirements at our existing regional development centers throughout the world.”

LEED Silver certification

McQuay officials have applied Leadership in Energy and Environmental Design (http://www.usgbc.org/) (LEED®)Silver certification from the U.S. Green Building Council for the ADC. With more than 90 percent of the building’s energy generated by process loads (e.g., hot and cold water for chiller and compressor tests), energy savings are realized primarily by recovering 75 percent of that energy and diverting it back into the system. Other environmental features include water-efficient landscaping, recycled construction waste, use of recycled content for interior surfaces, low-emitting sealants and locally purchased materials.

Importance of Daikin McQuay Applied Development Center to Minnesota

The new building has created 70 professional-level jobs for electrical and mechanical engineers and managers. “Locating this new facility in North America and in the Minneapolis area provides access to a significant pool of experienced and highly educated engineers,” said Miyamoto. “We considered locations throughout the world for the new research and development center, and ultimately decided that Minnesota’s work ethic and McQuay’s established position as a leader in applied HVAC systems made it the best place for this new global effort.”

Added Ron Hanlon, chief operating officer of McQuay Americas, “This is an exciting and concrete example of Daikin’s commitment to growth in the applied HVAC market worldwide, and McQuay’s North America business in particular. The products developed in this facility support our continued efforts to provide the highest efficiency solutions for our customers to conserve energy and help preserve the environment.” McQuay is a leading supplier for building projects pursuing LEED certification and is well positioned for projects receiving funding through the U.S. economic stimulus package.

The construction team includes Mortenson Construction, Minneapolis; HGA Architects and Engineers, with offices in Minneapolis; and Hunt Electric, Minneapolis.

Daikin Industries, Ltd. (http://www.daikin.com/index.html) is a Fortune 1000 company with 2008 revenues in excess of $12 billion and more than 40,000 employees worldwide. Daikin is engaged primarily in the development, manufacture, sales and aftermarket support of heating, ventilation, air conditioning and refrigeration (HVACR) equipment, refrigerants and other chemicals, as well as oil hydraulic products. For more information, visit www.daikin.com.

McQuay International (http://www.mcquay.com/), a wholly owned subsidiary of Daikin Industries, Ltd., delivers engineered, flexible solutions for commercial, industrial and institutional HVAC requirements with reliable products, knowledgeable applications expertise and responsive support. McQuay products and services are provided through a worldwide network of dedicated sales and service offices. For more information or the name of your local McQuay representative, call 800-432-1342, or visit www.mcquay.com.

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