Sweden's Electrolux said it will spend 425 million baht (approx. U.S. $10 million) on building a regional centre for making washing machines and driers in Thailand.
The new Thai production base would replace one in Denmark, which would be shut down by the end of this year, Ettore Gregorini, head of the laundry systems department of Electrolux (Thailand), told reporters.
Thailand would be one of Electrolux's three laundry systems production bases and moving to Thailand would help the company cut costs by 10 percent, he said. The other two bases are in Sweden and France.
The construction of the new plant in the eastern province of Rayong is expected to be completed within 20 months and begin production in 2006 with an initial capacity of 6,800 washers and dryers a year, Mr. Gregorini said.
"Some 95 percent of the products will be exported and the rest for domestic sale. The United States and Asia-Pacific will be major overseas markets," he said.
The company planned to boost annual capacity to 13,400 in 2007 and to 17,000 in 2009, when Electrolux expected to double its sales in Asia, Mr. Gregorini said. The appliance maker sold machines worth $300 million in 2004, about 20 percent of them Asia, where Thailand, Malaysia, and Singapore were among the fastest growing markets. (Reuters)
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