STIEBEL ELTRON has unveiled its 2024 investment plan for Thailand, allocating 600 million baht to establish the country as a central hub for heat pump production destined for export markets, including Australia and China. As the company approaches its centennial milestone, it reaffirms its leadership in eco-friendly water heaters and heat pump technology, reinforcing its foundation in innovative renewable energy technologies worldwide.
Dr. Kai Schiefelbein, CEO of STIEBEL ELTRON Group, disclosed that the 2024 investment and marketing plan focuses on continuous development in the Thai and Asian markets. This includes the construction of a new factory, currently in the land acquisition and building phase, to support the production of heat pumps, a flagship product of the company. Moreover, intensified efforts will promote STIEBEL ELTRON's range of water heaters and water filter systems, targeting specific consumer groups.
Thailand Set to Become a 'Hub' for Heat Pump Production Serving International Markets
Currently, the company's manufacturing plant operates in the Bang Pa-In Industrial Estate in Ayutthaya, producing water heaters and serving both the Thai market and export destinations across Asia since 2001. With consistently increasing sales each year, the plant has reached full production capacity. Hence, plans for a new 600 million baht investment in a nearby area are underway, covering both land and construction costs. This new facility is set to commence operations in 2025, primarily focusing on export production.
Accelerating Sales Growth
Mr. Heinz-Werner Schmidt, Managing Director for Sales and Marketing of STIEBEL ELTRON Group, noted that the company has primarily manufactured heat pumps in Germany. Exporting these products from Germany to countries like Australia incurs high costs, making Thailand a more suitable base for both production and export to Australia and China. The decision to expand investment in Thailand is influenced by the country's potential as an export hub, particularly considering its zero percent export and import tax rates. Additionally, the skillset of Thai labour aligns well with production requirements. Meanwhile, the company is exploring new opportunities to increase sales of its heat pump water heaters in Thailand and the Asia-Pacific region.
Globally, STIEBEL ELTRON has witnessed continuous sales growth since 2020, with sales reaching 700 million euros in 2020 and 1.4 billion euros in 2023.
Mr. Roland Hoehn, Managing Director of STIEBEL ELTRON Asia Co., Ltd., mentioned that the company's sales in Thailand in 2023 reached 1.065 billion baht, marking an 8% increase from the previous year. The upcoming investment is expected to significantly boost sales in Thailand, where the market currently accounts for 70% of the company's sales, compared to 3.5% from the overall regional sales. Over 50% of the market comes from Germany, with the remaining 50% spread across various global regions, including Europe and America.
Regarding sales and marketing plans in Thailand, the company aims to cater to customer bases A, B, and C, with the launch of the DE BLACK water heater targeting mainly Group C, creating awareness and acceptance of high-quality products at affordable prices. Although the current market for heat pumps is not extensive, the company foresees growth potential in line with the global trend of energy conservation, particularly in Thailand. The primary market for heat pumps includes small resorts and hotels seeking innovative renewable energy solutions to reduce business costs.
Advancing Towards a Sustainable Centennial Milestone
Since its foundation in 1924, STIEBEL ELTRON has prioritised the development of new innovations focusing on renewable energy, such as ventilation systems and heat pumps. As the company approaches its centennial milestone in 2024, its long-standing success can be attributed to technological expertise, an energy-efficient research and development team, and minimal environmental impact. Additionally, product quality and reliability, coupled with understanding customer needs in different countries, have been key. This year, the company is set to launch a new product, an air exchanger for residential and enclosed spaces. This device improves air quality by bringing in fresh oxygen from outside while expelling carbon dioxide from indoor areas, enhancing consumer life quality.
Moving forward, STIEBEL ELTRON remains committed to developing innovative products that are energy-efficient and reduce global warming, while simultaneously boosting sales growth in Thailand, Vietnam, and the Asian region.