China-based Haier Electric (Thailand) will spend 300 million baht to raise production capacity for commercial air conditioners at its factory in Prachin Buri's Kabin Buri district.
Production will see a 30-40% boost later this year.
"The additional air-conditioner output will serve mainly the domestic market but will also be exported to other Asean members such as Vietnam and Indonesia," president Yang Xiaolin said.
The Kabin Buri factory now makes 200,000 air conditioners a year -- 50,000 commercial air conditioners and 150,000 household units.
The plant is parent Haier Group's largest production base in Asean, making air conditioners, refrigerators, washing machines and freezers for domestic sales and export to major Asian markets, particularly in the Middle East.
The group also has a factory in Vietnam for refrigerators and washing machines, while the one in Indonesia makes refrigerators for the most part.
Haier Thailand began exporting commercial air conditioners to Laos and Myanmar last year.
Mr Yang said apart from the capacity increase, his company would focus more on building brand awareness among Thais.
About 5% of sales revenue has been set for a marketing budget to promote Haier electrical appliances.
"We expect Haier will become a top-five appliance brand for air conditioners, refrigerators and washers in Thailand within the next three to five years, when our sales are expected to reach US$100 million," Mr Yang said.
Haier Thailand normally averages 20% sales growth per year.
But the unfavourable domestic and global economies and intense competition have prompted the company to set a 2016 sales target of 2.2 billion baht, representing flat growth from last year.
Thailand's electrical appliance market was valued at 70 billion baht last year and is expected to show flat growth this year due to weak local consumption.