Japanese companies place US bets on Texas

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Concern over belligerence from China has refocused attention on the importance of the US market

Houston is home to a huge air-conditioning factory where some staff use bicycles or golf carts to get around. The plant, a 40-minute drive from the city centre, is owned by Japanese company Daikin Industries. “It is the third-largest factory in the US, following Tesla and Boeing,” says Jiro Tomita, senior associate officer at the company, proudly. Daikin Industries is based in Osaka, Japan, but its growth is driven from the US, particularly Texas.

And, as the risks of deepening trade links with China become apparent, Japanese companies are again recognising the importance of the US. Amid this renaissance, affordable cities in the south are growing in popularity among Japanese manufacturers, compared with previous favourites on the west coast and in the north-east of the US, especially in states such as Texas, Florida and North Carolina.

 

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