Daikin and American Standard's Trane Division announce global air conditioning alliance

Building on each other's product, brand, geographic and distribution strengths, the alliance will enable Daikin and Trane to increase their market opportunities in eight major regions around the world, serving their respective customers with broader product offerings while minimizing costs and risk. Each company will focus on its own areas of expertise and capitalize on the other's complementary capabilities. Through the alliance, the companies will be able to provide their own customers a complete line of heating, ventilation and air conditioning (HVAC) products, services and solutions for industrial, commercial and residential markets.

Daikin, with annual sales of 531.9 billion Yen/US$4.4 billion, is a Japanese air conditioning leader and has strong global market positions in ductless residential and commercial air conditioners as well as small chillers. Trane, with annual sales of about US$4.7 billion/572 billion Yen, is a global leader in commercial air conditioning systems and is a leader in ducted commercial and residential air conditioning in the United States.

"This is a natural, win-win alliance of two great industry-leading companies," said Noriyuki Inoue, Daikin president. "It will help us improve our applied business in Japan, while growing sales in a cost-efficient way and increasing overall customer satisfaction. We are excited to work with Trane and look forward to bringing our customers the benefits of this new alliance."

"This alliance will significantly expand Trane's global business and the products we provide customers in all our markets, without substantial investment in new product development and manufacturing," said Fred Poses, American Standard chairman and chief executive officer. "We have a long-standing relationship with Daikin and believe our complementary strengths will make this partnership the most successful in the industry."

As part of the alliance, Daikin will contribute its development and manufacturing expertise in ductless residential and commercial products as well as in dealer and installer distribution channels outside its home market. Outside the U.S., Trane will contribute its development and manufacturing expertise in applied and ducted unitary systems in addition to its experience selling through commercial channels, including consulting engineers, contractors and building owners.

The companies will implement this long-term strategic alliance when they develop a series of agreements for Japan, Europe, North and South America, Asia Pacific, the Middle East, Africa, India and China. Next year, Daikin and Trane plan to start a cross-sourcing arrangement in Europe, which will be followed by other country-specific agreements over time. In Japan, the companies also plan to start a cooperative relationship in the applied market. Daikin will supply Trane's chiller products and solutions expertise to its strong existing customer base as a way to expand its applied business.