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.