OSAKA — Daikin Industries will spend over 40 billion yen ($294.9 million) to build a factory in Poland that will make energy-efficient heating equipment beginning in 2024, Nikkei has learned.

Daikin, one of the world’s top air conditioner makers, is responding to rapidly growing demand sparked by countries distancing themselves from Russia-produced fossil fuels. Decarbonization subsidies being offered around the world are also stoking demand.