ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business

Panasonic cranks up Asian air conditioner output

Production begins in Thailand, with 40% capacity increase coming in Malaysia

BANGKOK -- Panasonic has started manufacturing air conditioners in Thailand and will build more in Malaysia, part of efforts to grow its appliance business in emerging Asia.

Production of mass-market models began last month at the company's heat exchanger plant at the Nava Nakorn Industrial Estate near Bangkok, the Japanese multinational said Wednesday. The new line can turn out 500,000 units annually, with 60% heading for Vietnam.

Panasonic had supplied the Thai market from the company's main air conditioner production base in Malaysia, where annual capacity will rise by 1 million units to 3.5 million by March. The factory also makes air conditioners for Western markets.

Together, the new Thai assembly line and the Malaysian expansion amount to a 60% rise in capacity over what Panasonic had in Malaysia before. In terms of investment, the increase will total 5 billion yen ($44.6 million).

Panasonic produces air conditioners in seven Asian countries besides Japan, including Indonesia, India, and the Philippines. The company holds the largest share of sales in Asia outside of Japan, but ranks fourth in Thailand, trailing Japanese competitors Mitsubishi Electric and Daikin Industries.

Panasonic eyes bigger sales of energy-saving inverter air conditioners as well as production of industrial models in Thailand, where it aims to become the market leader by 2020.

The Osaka-based group seeks to maintain double-digit annual growth in its Asian appliance business until 2020, when it hopes to reach double the level of its 2015 sales in that region, Hiroyuki Tagishi, managing director at Panasonic Appliances Asia Pacific, told reporters. That would outpace the annual growth of the Asian market as a whole.

"From a global perspective, our products sell best in Asia," Tagishi said, adding that Panasonic would continue making big investments in research and development, factories and other areas.

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media