On February 1, Daikin Industries bought up the refrigerant business in Europe of chemical manufacturer Solvay S.A. (headquartered in Brussel, Belgium), aiming to reinforce its refrigerant business with the automobile industry and also to cope with the total mass emission control on HFC to use.　The applicable scale of business is estimated to be 7 billion JPY, two thirds of which accounts for the auto air-conditioning refrigerant business using HFC134a and the remaining one thirds for the fluorine-containing gas business for pharmaceutical production. For the acquisition, about three billion JPY was invested. The refrigerant production base located in Frankfurt, Germany and the 80 employees are to be succeeded by Daikin, who will establish a new succeeded company (100% owned local affiliate) within February.

In Europe Daikin has had some business in such an item as fluorocarbon plastic hose for the automobile industries but no concrete business in refrigerant gases. Furthermore for auto air-conditioning refrigerants in Europe, there is an ongoing environment restriction called “F-gas Regulation,” upon which it will be compulsory to convert into HFO1234yf of low GWP (global warming potential) or CO2 from 2017.

At present there is an annual demand of 27 thousand tons for auto air-conditioning refrigerant (HFC134a) and in the midst of the coming conversion into a new gas, Daikin intends to expand its opportunity in the refrigerant business for the automobile industry. Under such circumstances Daikin has been negotiating with Solvay since about two years ago.

Speaking of the preceding production of HFO1234yf by DuPont and Honeywell, Daikin is developing its own production method to realize cost reduction by means of enhanced technology of raw material and processes, according to Katsuya Miura Planning Manager of Chemical Business Division.
　
In 2015, for more information, Europe started to apply a system to limit sales called “Quota” to the involved enterprises in order to reduce the use amount of HFC gases of high greenhouse effects. It is something like a total mass sales control, and any company having no sales quota is not qualified to sell HFC whether for automobiles or for general air conditioners.

For Daikin which is engaged in the air-conditioning business in Europe, it is a matter of life or death to secure the quota. As a result of the acquisition at this time, Daikin will be able to take over the sales quota owned by Solvay.

Miura also expressed his wishes saying, “Taking the opportunity of this acquisition, our refrigerant gas business in Europe will be enlarged with the conversion into R32 or 1234yf of less GWP than 410A, also in the field of the air-conditioning business. Together with the enhanced refrigerant gas business in the US, we aim to bring our global refrigerant business from the existing 12 billion JPY scale (2013) up to a 30 billion JPY level in 2018.”