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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

No.2041
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Tokyo, January 25, 2017 - Mitsubishi Heavy Industries, Ltd. (MHI) Group company, 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 household and commercial-use air conditioning systems. The aim of the expansion is to allow for a flexible response to the rising global needs for comfort air conditioning, as well as growing robust demand and market needs for household and commercial A/C, mainly in Asia. Facilities at the No.1 and No.2 works for assembly and parts manufacturing will be expanded, and a new third factory and electrical components works will be constructed. The new facilities are 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.

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 third factory of the two facilities to be newly established, the No. 3 works will manufacture plastic and sheet metal parts for household and commercial air conditioners. The electrical components works will mount the electric boards and other key components of air conditioners. Total investment, including expansion of facilities at existing plants, will be approximately ¥3.0 billion. The construction is scheduled to start in the first half of fiscal 2017.

This investment will increase MACO's production capacity, while also enhancing productivity through changes in facilities and production methods, and synchronization of assembly. It will also strengthen cost competitiveness, and minimize inventory of semi-finished goods and finished products.

The air conditioning business has become increasingly competitive in response to saturation of Japanese domestic markets, and an increase in manufacturers in overseas markets. However, ongoing growth is expected, based on rising global needs for comfortable air conditioning. MTH will effectively utilize MACO's production base for more efficient global business development.

Mitsubishi Heavy Industries-Mahajak Air Conditioners Co., Ltd.

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