Mitsubishi Electric to Increase A/C Compressor Production in Thailand

Rhea-AI Summary

Mitsubishi Electric Corporation has announced an investment of approximately 18 million USD to enhance production capacity at its air-conditioner compressor base, Siam Compressor Industry Co., Ltd, in Thailand. This investment aims to expand annual production of scroll compressors to 870,000 units from 745,000 units, starting from October 2022. The factory will implement new environmental measures to reduce CO₂ emissions. This expansion targets increasing demand in the U.S. and European markets due to a shift towards air-to-water heat pumps and growing air conditioner needs.

Positive

• Investment of 18 million USD to boost production capacity.
• Increased annual production from 745,000 to 870,000 scroll compressors.
• Implementation of environmentally friendly production methods to reduce CO2 emissions.
• Strategic response to rising demand for air conditioners in U.S. and European markets.

Negative

• None.

Will support heating & cooling compressor business expansion mainly in Europe and U.S.

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it will invest 0.6 billion Thai baht (approx. 18 million USD) to increase production capacity at the company’s air-conditioner compressor production base, Siam Compressor Industry Co., Ltd (SCI), in Thailand. Annual production of scroll compressors will expand eventually to 870,000 units, up from 745,000 units. The factory will increase production beginning in October 2022. As part of the expansion, the upgraded factory will adopt various new environmental measures, such as integrated production processes to shorten production cycles and energy-saving production methods to reduce CO₂ emissions.

In the European heating-system market, boiler-type heaters that rely on fossil fuel are rapidly being replaced with air-to-water heat pumps and water heaters in line with Europe’s decarbonization policies. In addition, the need for air conditioners has risen due to stay-at-home protocols implemented in response to the coronavirus. Going forward, demand for large room air conditioners, especially in the U.S., is expected to continue rising. Mitsubishi Electric will now respond to these demands by expanding its production of air-conditioner compressors in Thailand for supply mainly to the European and U.S. markets.

For the full text, please visit: www.MitsubishiElectric.com/news/

View source version on businesswire.com: https://www.businesswire.com/news/home/20211214005541/en/

Customer Inquiries

Overseas Air-Conditioning & Refrigeration Systems Div.

Global Compressor Marketing Department

Mitsubishi Electric Corporation

Tel: +81-3-3218-6132

www.MitsubishiElectric.com/

Media Inquiries

Takeyoshi Komatsu

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2346

prd.gnews@nk.MitsubishiElectric.co.jp

www.MitsubishiElectric.com/news/

Source: Mitsubishi Electric Corporation

FAQ

What is Mitsubishi Electric's recent investment for?

Mitsubishi Electric is investing 18 million USD to increase production capacity at its air-conditioner compressor facility in Thailand.

How many compressors will Mitsubishi Electric produce after the expansion?

After the expansion, Mitsubishi Electric plans to produce 870,000 scroll compressors annually.

When will the production increase begin?

Production is set to increase starting from October 2022.

Why is Mitsubishi Electric expanding its production?

The expansion is in response to growing demand for air conditioners in the U.S. and Europe, driven by shifts in energy policies and stay-at-home protocols.

What environmental measures will be adopted in the expanded facility?

The upgraded factory will implement energy-saving production methods and integrated processes to reduce CO2 emissions.