Turkey-based Koc Holding AS has officially introduced its Beko electrical appliance brand in Thailand and hopes to turn the local operation into an Asean home appliance production hub.
Thailand was chosen due to its promising growth prospects once the Asean Economic Community (AEC) kicks off next year, Levent Cakiroglu, global chief executive officer of the subsidiary Arcelik AS, said during a visit to Bangkok yesterday.
Mr Cakiroglu expects an AEC boost.
Apart from importing Beko appliances for Thai consumers, the company is also conducting a feasibility study on building a factory here.
The study is scheduled to be completed by year-end.
The factory, expected to cost US$100 million, would serve as a production hub to export refrigerators, washing machines and air conditioners to AEC markets.
"Thailand would be a base from which we hope to repeat in the AEC our success story in Europe, which is one of the world's most competitive markets for large home appliances," Mr Cakiroglu said.
He said Beko was now the best-selling large home appliance brand in Britain and ranked No.2 in Germany, Italy and France.
Thailand strengths include its regionally central location, sizeable domestic market, business-friendly environment and Board of Investment incentives, Mr Cakiroglu.
Beko appliances are now available in more than 100 countries worldwide.
In Asia-Pacific, they can be found in Malaysia, Singapore, Cambodia, Sri Lanka, Australia, New Zealand, China and now Thailand.
Arcelik AS expects overall home appliance sales will reach 16 billion baht annually in AEC markets in the next three years.
Titanco International Co has been appointed as the local distributor for Beko products in Thailand, and the products are now available at 30 outlets including Power Buy and Power Mall.
The number will expand to more than 100 next year.
Established in 1926, Koc Holding operates in four main sectors: consumer durables, energy, automotive and financial services.