JAPAN'S DAIKIN TO SET UP AIR CONDITIONER SERVICE UNITS IN CHINA.

AsiaPulse News, January, 2003

TOKYO, Jan 14 Asia Pulse - Daikin Industries Ltd. (TSE:6367) will set up three wholly owned air conditioner service subsidiaries in China starting in February, becoming the first in the industry to make such a move.

Daikin wants to take advantage of the recent deregulation in the world's most populous country and build a full-scale service structure there ahead of rival firms. It aims to rake in 10 billion yen in sales from the service operations in 2007.

The services Daikin provides there have been limited to simple repairs done by its local manufacturing and sales unit because establishing service-only companies had not been allowed under the Chinese regulations. But such rules were eased recently.

Daikin plans to set up subsidiaries in Beijing,...