Bitwise Thailand Co, the maker of Tasaki air conditioners, is negotiating with partners in China and Europe to produce spare parts for air conditioners in Thailand.
Managing director Somyos Keratichewanun said the talks are likely to conclude soon, followed by the establishment of a joint venture factory by the end of the year.
The factory will be built on 60 rai in the 304 Industrial Park in Prachin Buri, some 200 kilometres from Bangkok.
The new production facility would require a minimum investment of 500 million baht, said Mr Somyos.
The capacity of spare parts from this factory will supply Thailand's air-conditioner industry and support the company's future expansion both at home and abroad, he said.
Bitwise Thailand not only produces the Tasaki brand, but also acts as an original equipment manufacturer (OEM) for other brands.
The company aims to increase its 2016 sales by 50% to 3 billion baht within the next three years. About half that total will come from Thai Tasaki Engineering Co, which markets and distributes Tasaki.
The remaining 1.5 billion baht will come from exporting OEM products and spare parts to more than 50 countries.
The Middle East is its largest export market, representing 30% of exports, while Europe and Asia each make up 20-25%, with the rest going to other destinations such as the US and Africa.
Considering the hot climate in Thailand and small penetration rate per household for air conditioners, the company believes sales in the Thai market could expand significantly in both value and volume.
"The penetration rate is low at only 30% when compared with over 80% in Singapore and Hong Kong," said Uthai Lohachitranond, managing director of Thai Tasaki Engineering Co.
According to a study by Bitwise, Thailand's air-conditioner market is worth 20 billion baht. Of the total, 4 billion baht belongs to Thai brands with strong players including Central Air, Star Air, Saijo Denki, Eminent, Uni Air and Tasaki.
The greater portion or 16 billion baht is dominated by international brands, mostly from Japan, South Korea and the US.
Apart from the joint venture factory, Bitwise Thailand plans to use 300 million baht this year to expand its factory in Bang Phli district, Samut Prakan. The investment covers the construction of a new head office and training centre for integrated air-conditioner systems.
At present, the factory in Bang Phli has the production capacity to make 400,000 air conditioners a year.
Bitwise Thailand was founded 30 years ago, firstly to produce OEM air-conditioner products and spare parts for export. It moved to make its own brand, Tasaki, 20 years ago to lower risks from the export market.
Sales of Tasaki air conditioners in Thailand last year were 600 million baht, a figure it aims to increase to 1 billion by year-end.
Mr Uthai said to achieve its target, the firm will expand its business by revitalising its sales and service organisation, launching new commercial products and setting up new branches, especially in the South.
The company will also increase its distribution channel to 200 points of sale, up from 100.