Chinese giant also upping production in Vietnam, Russia, The Midea Group recently announced plans to invest US$150 million in Thailand, Vietnam and Russia in 2009 and 2010, in order to increase its production value by $700 million per year. The Midea Group wants to use the three countries as its production bases for exports to Asian countries and Russia, planning supervisor Shao Bin said.

The company also expects to benefit from free-trade agreements in the region, which will for example boost the export of appliances from Thailand to India. The Midea Group plans to invest $20 million in Thailand, $100 million in Vietnam and $30 million in Russia, he said. "We expect to achieve annual global sales of $15 billion by the end of 2010 after the plan to increase production capacity in the three countries is completed. We will become a maker of consumer electrical appliances with overseas sales of more than $5 billion, accounting for 30 per cent of our total sales, " Bin said.

For the Thai market, he said the Midea Group would increase production capacity for electric fans at its plant in the Bang Pu Industrial Estate, Samut Prakan. Thailand is the company's biggest production base for electric fans, with the capacity to make 80,000 units annually.

The Midea Group is considering producing other electrical appliances here or taking over a local appliance-maker to extend its production in the country. The company has marketed its products in Thailand for five years. The company expects revenue of $1.7 million this year, out of its global sales forecast of $12 billion.

"We will introduce new electrical appliances such as microwave ovens, vacuum cleaners, rice-cookers and cooker hoods in the Thai market next year. We expect sales in this market to increase significantly from $1.7 million to $7.5 million next year, " he said.

Bin added that the Midea Group was not unduly concerned about the political conflict in Thailand. The company believes the political turbulence is a short-term problem and that the economy will recover quickly once it is resolved.

The Midea Group distributes its products through modern trade outlets like Makro, Carrefour, The Mall, Big C and Central. The group operates three plants in Vietnam and will set up another two next year to increase production capacity for air-conditioners, vacuum cleaners, air-purifiers and irons, said marketing manager Rocky Wang. Meanwhile, the company will increase the production capacity for heaters at its Russian facility.