Will support heating & cooling compressor business expansion mainly in Europe and U.S.
Mitsubishi Electric Corporation (TYO: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.
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