The Completion Ceremony of AUX Thailand Manufacturing Base

Structure Completion of AUX’s Manufacturing Base in Thailand Opens up a New Chapter for Internationalization Strategy

RAYONG, Thailand, August 27, 2019/CNR/- On August 24, 2019, AUX held the "Belt and Road" Thailand Base Structure Completion Ceremony & AUX "Belt and Road" Strategic Partnership Conference in Rayong, Thailand. The ceremony was attended by Zheng Jianjiang, Chairman of AUX Group, Zhang Peidong, Economic and Commercial Counsellor of China's Embassy in the Kingdom of Thailand, Pol.Gen.Chidchai Vanasatidya, former Deputy Prime Minister of Thailand and current President of the Thai-Chinese Rayong Industrial Zone, Shen Shuhuan, Vice General Manager of Ningbo Branch of China Export & Credit Insurance Corporation, Wang Yinfei, General Manager of China Construction Installation Engineering (Thailand) Co., Ltd., Li Zhigang, President of Chinese-Thai Enterprises Association, Xu Genluo, a director of the Thai-Chinese Rayong Industrial Zone, Li Feng, General Manager of Bank of China (Thailand), among other guests. The conference arguably saw unprecedented presence of over 300 distributors and customers across over 100 countries and regions in Asia Pacific, Middle East, America, Europe and Africa.

Structure Completion Ceremony for AUX’s Manufacturing Base in Thailand

Located in Rayong Industrial Zone, AUX’s manufacturing base in Thailand is one of the three special economic zones established by the Thai government to advance its Eastern Economic Corridor. Developed in 2006, it is one of the first China-backed overseas economic and trade cooperation zones and the first modern industrial park for Chinese investors in Thailand. The establishment of AUX’s air-conditioning manufacturing base in Thailand is an important outcome of translating the Belt and Road Initiative into development opportunities for China-Thailand economic cooperation.

Bird's-eye View of Manufacturing Base

Themed “Start a New Future”, the Structure Completion Ceremony opened up a new chapter for AUX’s internationalization strategy. In the ceremony, AUX’s manufacturing base in Thailand was inaugurated by Chairman Zheng Jianjiang and other guests.

Inauguration Ceremony

In the ceremony, Chairman Zheng Jianjiang said that, as a strategic area of the Belt and Road Initiative, Thailand is the logistics, trade and financial center of ASEAN, and also a natural bridge between ASEAN and China, and a hinge connecting Asia with Europe and the Americas. With the continuous deepening of the Belt and Road Initiative, new opportunities and broader space are brought to the economic and trade development of China and Thailand. In active response to the national initiative, AUX invests 1.5 billion yuan in its first overseas air conditioning manufacture base, implements its internationalization strategy, facilitates industry-wide transformation towards higher quality, and gives global users access to more innovative high-end air conditioners. Whiling devoting itself to building the globalized industrial chain ecosystem, AUX would like to strive for common development together with global distributors so as to create more value to all consumers and produce win-win results among multiple stakeholders.

Zheng Jianjiang, Chairman of AUX Group, delivers a speech.

It is learned that the manufacturing base in Thailand is AUX’s third overseas manufacturing base,followed by those in Brazil and Indonesia. Capitalizing on Thailand's unique geographical advantages, industrial supporting advantages and resource advantages, AUX is committed to building a world-leading smart air-conditioning manufacturing base integrating production and sales in the country.

Zhang Peidong, Economic and Commercial Counsellor of China's Embassy in the Kingdom of Thailand, said that with the recognition of and participation in China's Belt and Road Initiative by many countries, including Thailand, more and more Chinese enterprises have entered Thailand, which elevates the economic and trade cooperation between China and Thailand to an unprecedented level. As a Chinese enterprise with global operations, AUX sells its air-conditioning products globally as China’s image and a representative of Chinese companies. Going forward, it is hopeful that AUX can make full use of Thailand's convenient and preferential policy conditions favoring foreign businesses to bring more value to its internationalization, and create a new benchmark for the development of China's household appliances industry in Thailand.

Zhang Peidong, Economic and Commercial Counsellor of China's Embassy in the Kingdom of Thailand, delivers a speech.

Pol.Gen.Chidchai Vanasatidya, former Deputy Prime Minister of Thailand and current President of the Thai-Chinese Rayong Industrial Zone, said that as a leading brand of air conditioning in China, AUX enjoys a significant presence in China. "We believe that the establishment of AUX's manufacturing base in Thailand will bring new vitality to Thailand's air-conditioning industry. We also hope that competent companies like AUX will start their operations in Rayong Industrial Zone," he said.

Pol.Gen.Chidchai Vanasatidya, former Deputy Prime Minister of Thailand and current President of the Thai-Chinese Rayong Industrial Zone, delivers a speech.

Establishment of AUX’s manufacturing base in Thailand represents pursuit of Southeast Asia market share under the Belt and Road Initiative

Southeast Asia hosts 11 countries, including Thailand, with a total population of 642 million. This number means a large consumer base. In addition, in these tropical countries, there is a large demand for air conditioning. Thailand produces 20% of the air conditioners in Southeast Asia, and is the second largest air conditioning market in the region. It is the world's second largest producer and exporter of air conditioners, second only to China.

Statistics show that Southeast Asia has a very rich potential market for household appliances. Compared with the European and American markets, Southeast Asia is closer to China geographically, which gives it great transportation advantages. The establishment of AUX’s manufacturing base in Thailand will bring its products beyond the local market to neighboring countries and regions, including India, Pakistan and Middle East, thus boosting the development of the regional market.

For this manufacturing base, the investment totals 1.5 billion yuan, and the planned annual output of intelligent air conditions is 3 million units. The first phase covers an area of 170 mu (about 688,005 square meters), with the floor area being 100,000 square meters or so. With 600 million yuan, Phase I has planned capacity equivalent to 1.1 million units. As an advanced intelligent factory in the AC industry, the manufacturing base covers automation and informatization, realizes integrated production and storage, and sets new records in efficiency and delivery period. This makes it a new standard setter for intelligent AC manufacturing.

Worth noting is the upgrade made by the new factory in all respects, such as automatic production, intelligent equipment, informatization management, digital decision-making, and automated storage and retrieval system (ASRS). This allows the capacity per capita to increase by 30% and the product delivery cycle to be shortened by 30%.

As a leading enterprise of household appliances in China, the establishment of AUX’s air-conditioning manufacturing base in Thailand shows that AUX has taken the initiative in the air conditioning market in Southeast Asia. It also represents a message of China’s home appliances industry transforming from early output of OEM capacity to continuous output of manufacturing and innovation capabilities.

Taking the Belt and Road Initiative as an opportunity and building on Thailand’s resource advantages and its own technical advantage, capital advantage and supply chain advantage, AUX is committed to accelerating its internationalization and informatization strategy, building its Thai factory into a leading intelligent air conditioning manufacturing base integrating production and sales in Thailand and beyond, and realizing the integrated international operation featuring "localized manufacturing and marketing". This will enable AUX to bring better quality and affordable products and comprehensive services to more consumers in Southeast Asia and even beyond.

AUX’s speed and innovation opens up a new chapter for its internationalization strategy

On the afternoon of August 24, AUX "Belt and Road" Strategic Partnership Conference was held. The conference arguably saw unprecedented presence of over 300 distributors and suppliers across over 100 countries and regions in ASEAN, Asia Pacific, Middle East, America, Europe and Africa. It is learned that recent years have seen AUX’s huge investment in R&D and manufacturing.  Over the past three years, it has invested over 3 billion yuan in quality innovation, and obtained 5,437 patents. In March this year, AUX set up a research and development center in Japan. Following the principle of "high standard, high requirement and high quality", the center aims to contribute to AUX’s technical innovation and quality upgrade, and become a world-class air-conditioning technology research and development base. As of now, AUX has ten manufacturing bases including the one in Thailand, and five R& D centers including the one in Japan.

Strategic Partnership Conference

Because of its continuous investment in technological innovation and intelligent manufacturing, AUX has continued with technological upgrading, manufacturing upgrading, channel innovation, brand building and other transformation, and scored a series of achievements. Leng Ling, President of the Home Appliances Department of AUX, said that AUX has ranked No.1 in terms of domestic and foreign AC sales for three consecutive years. In 2018, it was arguably the No.1 brand of Internet air conditioners, with uncomparable online sales, growth rate and approval rate. It is the only one enterprise which has won the Quality Benchmarking Award for 5 times in China’s AC industry. It is the only one AC brand that promises that one can return AUX air conditioners for no reason after 60 days of purchase. This is the best testimony of good quality and confidence. In recent years, building on its 5 R&D centers and 10 manufacturing bases around the world, AUX has created a whole industry chain service system, which enables global business partners to meet the needs of global users with better technology and higher quality.

At the conference, Zhang Xuequan, Executive Vice President of Ningbo Aux Imp. & Exp. Co., Ltd., elaborated on the latest deployment of AUX's overseas strategy. Zhang said that AUX exports its air conditioners to more than 100 countries and regions. It ranks No.1 in 16 countries and among the top three in 65 countries, and has been recognized as the fastest growing brand for 5 consecutive years. Over 5 million units were sold in overseas markets last year. With the establishment of its manufacturing base in Thailand, AUX will maximize interests and promote the rapid growth of global customers in an all-round way with better product quality and delivery cycle, lower trade risk, more stable cost control, more efficient inventory turnover capacity, and better after-sales service capacity.

Smart manufacturing is an important driving force for the progress of times. All work concerning the establishment of AUX's intelligent factory in Ningbo, from land purchase to operation, took only 15 months. This makes it an intelligent and integrated AC factory representing the highest level of AC industry and the high standard of "Chinese smart manufacturing".The construction of AUX's manufacturing base in Thailand, from land purchase to operation, took just 14 months. It is another milestone of AUX accelerating its smart manufacturing layout across the world. It also marks a new starting point for AUX's internationalization strategy.

In addition to the establishment of the R&D center in Japan and the manufacturing base in Thailand, AUX has transformed industry tradition by launching for the first time a brand-new marketing model of "Internet-based direct sales of air conditioners", which realizes whole channel optimization. It promotes the rights and interests of consumers, creates a brand-new era of consumption belonging to global households and users, and leads China's air-conditioning industry and even the whole household appliances industry into a new era of commercial retailing. All these add to the instances of AUX's commitment to speed and innovation.

"Internationalization" is an important strategy for AUX to operate globally. The establishment of the manufacturing base in Thailand is an important measure taken by AUX to respond to the Belt and Road Initiative and to speed up its internationalization strategy. It is also the only way for the internationalization of China's air conditioning industry. AUX’s goal is to bring high-quality and affordable air conditioners to users and consumers in Southeast Asia and beyond and ensure the alignment of its intelligent AC manufacturing capacity with international standards. AUX will continue to boost “Chinese smart manufacturing” with innovation, convey its new philosophy with strength and showcase the prowess of “Chinese smart manufacturing” to the world!