The Japanese air conditioning giant Daikin Industries will build a commercial air conditioning equipment plant in Malaysia as it looks to expand its business in Southeast Asia. The plant will be constructed on the outskirts of the capital Kuala Lumpur, with initial investment of 3 billion yen ($29.3 million). The factory will produce large air conditioning units beginning in 2018. Daikin will also establish an umbrella company in Malaysia for its Southeast Asian commercial air conditioner business. The new company will design and produce customized equipment to fit orders as well as handle long-term maintenance, and will have both manufacturing and sales functions. Daikin currently exports large air conditioning equipment from China to Southeast Asia, where demand is projected to grow by more than 10% annually amidst a construction boom in commercial facilities and skyscrapers. By producing the units locally, Daikin aims to become more competitive on price, and triple its Southeast Asian business to 30 billion yen in the nearfuture.