Changes in Faribault: $40.3 million expansion planned for Daikin

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Courtesy of Southernminn.com

The residents of Faribault and the surrounding area will soon notice a change in their landscape: Local Commercial HAVAC manufacturer Daikin Applied Americas Inc. is looking to expand operations with a $40.3 million project on deck.

The company shared recently it’s plans to buy an existing 300,000-square-foot warehouse and renovate the building into a state-of-the-art production facility. This expansion project will create 132 new jobs within five years and pay wages that average $22.20 an hour.

About Daikin Industries

Based out of Plymouth, Daikin Applied Americas, makes heating, ventilation and air conditioning (HVAC) systems for the commercial market. Parent company Daikin Industries Ltd. was founded in 1924 and is headquartered in Osaka, Japan. The company has an annual revenue of more than $20 billion, employs over 70,000 employees and works with customers in over 150 countries. With its annual revenue, number of employees, and 90 production sites worldwide the company is the largest HVAC manufacturer in the world. The company employs 900 people at existing manufacturing facilities in Faribault and Owatonna.

$40.3 Million Expansion Planned for Daikin
Courtesy of bizjournals.com

With a loan of $750,000 from the Minnesota Investment Fund and a $1.6 million grant from the Job Creation Fund The Minnesota Department of Employment and Economic Development (DEED) is supporting the project. The company will receive the funding after it meets investment and hiring commitments.

DEED Commissioner Shawntera Hardy spoke of our regions work ethic when commenting on the expansion being supported by DEED, saying, “Daikin Applied explored multiple U.S. sites and Mexico for this project but ultimately chose southern Minnesota. The company’s decision to expand in the area is a testament to the region’s skilled workforce and positive achievements at existing operations.”

The Job Creation Fund, which was created by Gov. Mark Dayton in 2013, is a pay-for-performance program that provides funding to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. Under the program, businesses must create at least 10 full-time jobs and invest at least $500,000 to be eligible for financial assistance in the Twin Cities metro and create at least five full-time jobs and invest at least $250,000 in Greater Minnesota.

Since the Job Creation Fund was launched in January 2014, DEED has awarded nearly $41.4 million for 91 business expansion projects in Minnesota. Companies have committed to creating 5,558 full-time jobs and investing $1.2 billion.

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