MHI to Expand A/C Production Structure at Thai Joint Venture, MACO

Mitsubishi Heavy Industries Thermal Systems to build third factory for parts manufacturing, and electrical components factory

Japan: Mitsubishi Heavy Industries Thermal Systems, Ltd. (MTH) is expanding the production structure at Mitsubishi Heavy Industries-Mahajak Air Conditioners Co., Ltd. (MACO), its joint venture company in Thailand, to manufacture and sell its household and commercial-use air conditioning systems.

The expansion aims to provide a flexible response to the rising global needs for air conditioning, as well as increasing demand and market needs of household and commercial A/C, mainly in Asia. MACO-was established in 1988 with the local firm Mahajak Industry Co., Ltd. MACO-has two production plants in the Ladkrabang Industrial Estate in the suburbs of Bangkok where it manufactures components and assembles household and commercial air conditioners. The company is planning to open a third new factory, where electrical components works will be constructed and plastic & sheet metal parts for household and commercial air conditioners will be manufactured. The factory is scheduled to begin operations in early 2018, with an expected increase in production volume to 2.7 million units by fiscal 2020, a 30% increase compared to fiscal 2015.

TechSci Research depicts that this investment will help MACO in increasing its production capacity, while it will also enhance the productivity of the joint venture company through changes in production methods, synchronization of assembly, strengthening of cost competitiveness, and minimization of inventory for semi-finished goods and finished products.

According to a recent report published by TechSci Research “Global Air Conditioners Market Forecast & Opportunities, 2020”, global air conditioner market is projected to grow at a CAGR of 8.5% during 2015-20. In addition to the residential segment, growing hospitality and tourism sectors are contributing significantly towards rising demand for air conditioners across the globe. Introduction of energy-efficient air conditioners and air conditioners with in-built air purifiers is expected to boost air conditioner sales in the coming years. Split air conditioners dominated the global air conditioners market over window air conditioners, and this trend is expected to continue during the forecast period. The adoption of window air conditioners, VRF system, chillers and portable air conditioners is also expected to grow over the next five years. Few of the major air conditioner manufacturers with significant global footprint include Gree, Daikin, Toshiba, Carrier, Midea, LG, Panasonic and Trane.