MN: Daikin Plans $40.3M Expansion in Faribault, 132 New Jobs
31 Aug, 2018
Commercial HVAC manufacturer Daikin Applied Americas Inc. will create 132 jobs and invest $40.3 million to expand its manufacturing operations in Faribault.
The company said it will buy an existing 300,000-square-foot warehouse and renovate the building into a state-of-the-art production facility. The new jobs will be created within five years and pay wages that average $22.20 an hour.
The Minnesota Department of Employment and Economic Development (DEED) is supporting the project with a $750,000 loan from the Minnesota Investment Fund and a $1.6 million grant from the Job Creation Fund. The company will receive the funding after it meets investment and hiring commitments.
“Daikin Applied explored multiple U.S. sites and Mexico for this project but ultimately chose southern Minnesota,” said DEED Commissioner Shawntera Hardy. “The company’s decision to expand in the area is a testament to the region's skilled workforce and positive achievements at existing operations.”
Daikin Applied Americas, which is based in Plymouth, makes heating, ventilation and air conditioning (HVAC) systems for the commercial market. The company employs 900 people at existing manufacturing facilities in Faribault and Owatonna.
Parent company Daikin Industries Ltd. – founded in 1924 and headquartered in Osaka, Japan – has annual revenue of more than $20 billion and over 70,000 employees, making it the largest HVAC manufacturer in the world. The company has over 90 production sites worldwide and works with customers in more than 150 countries.
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.
Go to the DEED website for more details about the Job Creation Fund.
The Minnesota Investment Fund awards loans that businesses can use for improving their operations and hiring additional workers. Last year, the program awarded $10.3 million in financial support to 16 businesses. Those loans resulted in more than 1,175 jobs and attracted $324 million in private funding.
The DEED website has more details about the Minnesota Investment Fund.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow us on Twitter.