(Photo courtesy of Mitsubishi Heavey Industries)
TOKYO, NNA - A group company of Japan’s Mitsubishi Heavy Industries Ltd. will open its second car air conditioner plant in China to capitalize on an anticipated fast-growing demand there for electric vehicles and eco-friendly new energy automobiles.
Mitsubishi Heavy Industries Thermal Systems Ltd. (MHI Thermal Systems) and the administration of Changshu, Jiangsu Province, signed an agreement on Tuesday to build the plant in the eastern coastal city to produce electric compressors for car air conditioners, Mitsubishi Heavy said in a statement. It will be MHI Thermal Systems’ second car air conditioner plant in China, following the one in Shanghai.
The plant will be operated by the tentatively named MHI Automotive Climate Control (Changshu) Co., a wholly owned subsidiary to be established this year by MHI Thermal Systems in the Changshu New and High-tech Industrial Development Zone, the statement said. The plant is due to start operations within the year to March 2022 with an annual production capacity of 500,000 units. The amount of investment was not disclosed.
“China is projected to be a priority market going forward,” the statement said, “with rapid expansion in demand anticipated for electric vehicles and eco-friendly new energy automobiles.”
The new plant will manufacture electric scroll compressors with technologies geared to reduce their size and weight, and enhance their energy efficiency, the statement said. The products will be supplied mainly to Chinese clients for use in electric vehicles and new energy automobiles.
According to a Mitsubishi Heavy spokeswoman, the majority of MHI Thermal Systems’ electric compressors are sold in the Chinese market. MHI Systems also manufactures car air conditioners in Japan, the United States and Thailand.