Midea, a Chinese air conditioner and electric appliance manufacturer, is expanding its manufacturing facilities in Thailand.
The country is a key manufacturing base for Midea and the company is building two new plants in Rayong, said Thanawat Wongchanwuth, deputy general manager at MD Consumer Appliance (Thailand) Co Ltd, the local subsidiary of Midea.
With an investment of 2.26 billion baht, a new plant that started construction in 2023 is expected to commence operations by the second quarter of this year.
The plant occupies a 46-rai site within the CPGC Industrial Estate in Rayong.
The factory will produce variable refrigerant flow (VRF) systems and chillers, with a production capacity of 600,000 units per year, he said. Roughly 90% of the production is planned for export, said Mr Thanawat.
The company operates five factories in Thailand, said Wiwatchai Sirithaworn, marketing manager at MD Consumer Appliance (Thailand).
He said Midea is constructing another plant in Rayong to produce microwaves, refrigerators and freezers.
The plant is projected to be completed by 2026, though investment details have not been revealed.
Mr Thanawat said Midea aims to achieve sales of 3.8 billion baht this year, doubling last year's figure of 1.9 billion.
This growth will be driven by new distribution channels, he said.
Midea products are available at major building material retailers such as Global House and Dohome.
The company recently expanded its presence to hypermarkets including Lotus's, Big C and Makro, as well as re-entering the electronics retailer Power Buy.
MD Consumer Appliance also bulked up its dealers, from around 270 in 2023 to more than 500 stores in 2024, said Mr Thanawat.
Midea is optimistic about the government's "Easy E-receipt" stimulus scheme, which is expected to increase its sales in the first quarter, said Mr Wiwatchai.
"Enhancing brand awareness is our key marketing strategy this year," he said.
The company plans to double its marketing budget in 2025, engaging in both online and offline strategies such as subway train wraps and billboards.