Sustainable, 5G and AI factory in Thailand powers Midea’s global expansion
Chinese smart home appliance brand’s award-winning plant sets benchmark for manufacturing facilities in Southeast Asia
Many mainland China-based consumer brands have expanded their presence around the world in recent years in a concerted effort to diversify and scale their business activities.
From the technology conglomerate Huawei and electric vehicle maker BYD to coffeehouse chain Luckin Coffee, Chinese brands have begun to expand beyond their home turf and are growing in prominence overseas in their respective sectors.
Midea, the Chinese home appliance and electronic devices brand – producer of everything from refrigerators, dishwashers, microwave ovens, vacuum cleaners and tumble dryers, to air conditioners and smart-home systems activated by remote sensors and voice control – is one leading example.
The innovative, user-friendly and energy-efficient products offered by Midea, which was founded in 1968 and is headquartered in Foshan, Guangdong province, have helped it to win an international reputation for quality and reliability.
Today the company serves a total market of more than 640 million customers in over 200 countries and regions. With its 38 global research and development hubs and two dedicated innovation centres, focused on integrating the latest technologies and intelligent solutions, the stage is well set for further gains and development.
For instance, market research company Euromonitor named Midea the world’s No 1 smart home appliances brand last year and the world’s best-selling residential inverter air conditioner brand between 2022 and 2024. In addition, it was ranked 246th in this year’s Fortune Global 500 list of the top international corporations rated on revenue – an impressive jump of 31 places from last year’s position.
The company also takes account of factors such as sustainability, local impact, best management practices and investment in new facilities. By those measures, Midea’s state-of-the-art factory in Chonburi, Thailand – officially named Midea Thailand RAC Factory – is setting new benchmarks for the sector with its use of green technology, automation and low-carbon sources of renewable energy.
The 208,000-square-metre (2,240,000-square-foot) plant, which makes residential air-conditioning units, began full-scale operations in 2022. From the time the first blueprints were drawn up, the goal was to build a hi-tech facility that would show the brand’s leadership in smart manufacturing by advancing digital transformation and putting eco-friendly strategies into action.
A parallel aim was to support growth in the Thai economy by employing and training local recruits to empower them with relevant skills and create new career pathways.
Clearly, both objectives have been met – something confirmed by the global think tank World Economic Forum’s recent decision to award it a certification as a “Global Lighthouse Network” factory.
This makes Midea’s Chonburi operation the first overseas facility of a Chinese home appliance brand to earn that designation, while also being the first in both the sector in Thailand and the air-conditioning industry in Southeast Asia.
The Lighthouse Network is an initiative which has assessed thousands of leading manufacturers to identify the most advanced practices around the world and create a platform to share insights and accelerate the adoption of Fourth Industrial Revolution, or Industry 4.0, advanced digital and smart technologies.
In doing so, the intention is to guide and inform other manufacturers in their efforts to modernise and transform, as well as to establish a vibrant community for continuous learning and collaboration.
Midea’s inclusion in the network highlights the Thai factory’s success in combining advanced technology, environmental awareness and local engagement. This has made it possible not only to boost efficiency and enhance product quality, but also minimise emissions and contribute to the region’s broader economic development.
For that to happen, Midea fully committed to the deployment of a factory production system using 5G and artificial intelligence (AI) – computer systems that can copy intelligent human behaviour. Among other features, this enables real-time equipment connectivity, closed-loop data management and automated quality inspection, which all help to improve speed and consistency in the production cycle.
The factory’s annual output will reach 6 million units by next year – up from 5 million units this year. This increase is expected to further solidify its position as the largest air-conditioning production facility in Southeast Asia.
To meet separate targets, the planning team opted for the use of sustainable building materials, dual carbon control systems – with set targets for emissions – water recycling and photovoltaic power generation, using solar panels to convert sunlight into energy.
The result is a significant reduction in energy consumption and carbon emissions, thereby setting new benchmarks and proving the definitive value of green technologies in today’s industrial processes.
Similar vision has guided the company’s approach to recruitment and training. As the factory complex took shape and geared up for the initial shipments, the preferred policy was to invest in the development of local talent with a view to providing stable employment and long-term opportunities.
Such foresight has paid off in significant ways, not least in building a loyal workforce, extending sales coverage and integrating the Chinese manufacturer into a cross-border supply chain centred on Southeast Asia.
As Midea continues to expand its presence in the region, it is also raising its corporate profile in other ways, most notably with a series of brand partnerships and sponsorship agreements.
This strategy has already led to tie-ups with leading mainland-based food and beverage brands such as hotpot restaurant chain Haidilao across Asia.
Other collaborations have also recently been announced, which will use the medium of sport to put the company’s name before an even wider audience.
One such deal is with the Asian Football Confederation to back regional men’s and women’s club competitions until 2029. Another is to become a “main partner” of the Spanish La Liga giants FC Barcelona for a five-year period starting from the 2026-27 season.
The football club is known for its huge worldwide following, which means this association is a sure way of increasing Midea’s brand exposure and recognition and allowing it to engage with potentially millions more potential customers around the globe.