Hitachi, Ltd. today announced that Hitachi Consumer Products (Thailand) , Ltd.
(HCPT), which manufactures consumer products in Thailand, will build a refrigerator
plant at the Kabinburi industrial estate located some 160km northeast of Bangkok, as
part of its strategic move to expand overseas refrigerator business.
The aim of the new plant is to expand Hitachi's existing refrigerator business in
Thailand and other regions of Asia, also expanding export of small and medium-size
refrigerators to Japan. The plant will be built on a 40,000 square-meter site adjacent to
the existing Kabinburi plant, which currently produces washing machines, pumps and
other products. Operations at the new plant are scheduled to start in 2001.
The new plant will have a production capacity of around 600,000 units a year, involving
a total investment of around 4 billion yen (1.4 billion bahts). Hitachi will also increase
its capital in HCPT.
Competition in Thailand's home appliances market is becoming severe, with the entry
by manufacturers from Korea and other countries bringing price reduction. This has
made it necessary for Hitachi to strengthen its cost-competitiveness, improve production
efficiency and expand its lineup of large, multi-door models, hence the decision to build
the new plant.
Currently, HCPT's refrigerator operations are enjoying increase in production, due to
the recovery of Thailand economy, and contribution of a new refrigerator which was
developed by meeting local needs. This highly-popular refrigerator leads the market by
incorporating a water cooler in its door, and is able to pour cold water without opening
the door.
Existing refrigerator production operations at the Samutprakan plant will gradually be
transferred to the new plant. Part of the production of medium-sized refrigerator will
also be transferred from the Tochigi plant in Japan to the new plant, which in term will
also contribute to improve the efficiency of Hitachi's refrigerator operations in Japan.
Hitachi is implementing a global production strategy in its refrigerator operations as
part of the company's "i.e. HITACHI" medium-term consolidated business plan aimed
at making Hitachi the best solutions partner.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global
electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated sales of
7,977 billion yen ($65.9 billion*). The company manufactures and markets a wide
range of products, including computers, semiconductors, consumer products and power
and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's
Web site at http://www.hitachi.co.jp.
* At an exchange rate of 121 yen to the dollar.
Outline of Hitachi Consumer Products (Thailand), Ltd.
President: Hoya Nakamura
Head Office: 274 Moo 9 Sukhumvit Road, Tambol Teparak, Amphur Muang
Samutprakan, Thailand
Established: November 1970
Capital: 420 million bahts (fiscal 1999)
No. of employees: 2,200 (as of March 2000)
Main products: Samutprakan plant- Color TVs, refrigerators, air-conditioners
Kabinburi plant - Washing machines, well pumps, electric fans
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