SINGAPORE - Media OutReach - 9 November 2020 - DaikinSingapore ("Daikin") today announced that it has signed a Memorandumof Understanding (MOU) with SP Group ("SP") to provide Singapore's firstlarge-scale residential centralised cooling system at Tengah.

The MOU includes jointresearch and development, product innovation and marketing opportunities inTengah, and future collaborative opportunities in Singapore and the region.

The partnership buildson SP's expertise and strong track record in operating the world's largestunderground district cooling system in Marina Bay and Daikin's strength in theair-conditioning industry through its Chilled Water System Equipment includingchillers, water pumps, fan coil units, and maintenance services. 

"Daikin is enthusiastic about this collaborationwith SP Group. Daikin has designed unique equipment for this project in Tengah.With this collaboration, we look forward to working together to make the Tengahtown energy-efficient, green and cool." said Mr Masanori Togawa, President andChief Executive Officer, Daikin Industries, Ltd.

Mr Stanley Huang, Group Chief Executive Officer, SPGroup, said, "SP Group aims to enable a low-carbon, smart energy future byintegrating sustainability into the everyday life of the residents. Throughthis collaboration with Daikin and building on SP's strong track record inproviding smart energy solutions in Singapore, we look forward to helping householdsenjoy the reliability and energy efficiency of centralised cooling."

Centralised Cooling for Tengah

The centralised coolingsystem for residential Housing Development Board projects aims to optimise theenergy consumption for air-conditioning needs and reduce the urban heat islandeffect. Around 22,000 households stand to benefit from this initiative and Tengahwill be the model for low-carbon smart energy towns in Singapore.

Daikin Singapore willdeploy its Building Management System (BMS) to monitor and control Tengah'scentralised cooling system. Following the acquisition of BMS Engineering lastyear, Daikin is now able to provide the technical equipment as well asmaintenance of systems as a one-stop solutions provider.

Going Green Regionally

This collaborationmarks a first for Daikin. The partnership with SP is part of Daikin's longer-termgrowth strategy to meet the changing requirements of energy players, sustainablearchitecture projects as well as the rising number of social-conscious citizensin need for more adaptable accommodations.

Daikin and SP will monitorand optimise the model for Tengah and explore future opportunities to replicatethe same reliable and efficient system in other parts of Singapore and theSoutheast Asia region. This builds upon Singapore's ongoing roadmap for greenerbuildings as well as the longer-term vision for a Singapore Smart-city thatincludes sustainability in its advocacy.

About Daikin Singapore

Prior to the acquisition ofBMS Engineering, Daikin Singapore has placed its strategic focus on HDB,building a stronger sales channel by developing Daikin Proshop andthereby differentiating itself from its competitors. With 50 years of historyin Singapore, Daikin also drove expansion by launching differentiated productssuch as Remote Monitoring System (RMS), which provides energy optimization andpredictive analytics. In Applied Product equipment (AP), which is mainly usedin commercial or industrial sector, it expanded sales by focusing on highlyefficient products like magnetic-chiller products and airside using EC motors.Its services business was solely related to the repair and supply of spareparts and moving forward, the company will now focus on Indoor Air Quality(IAQ) and Eco-Friendly Maintenance, where it aims to support green buildingprojects through its acquisition of BMS Engineering. Daikin will then optimise ACequipment and other building equipment implementation before moving towardsproviding a full suite of services by adding Energy Management to its portfolioto manage equipment for the whole building.