(Yicai) Dec. 23 -- Dechang Electrical Machinery Made said it plans to invest CNY1.1 billion (USD151 million) to build factories in China and Thailand, lifting its capacity to meet demand for small home appliances and mitigating the potentially adverse impact of changes in the global trade landscape.

Dechang will spend CNY442 million (USD60.6 million) on a new plant in its home city of Ningbo that can turn out 1.2 million smart kitchen appliances a year and CNY638 million on one in Thailand that can produce five million small home appliances, the firm said in separate statements late on Dec. 20. 

The Ningbo factory will make Dechang's first kitchen home appliances while also researching and developing other new products, the company noted, adding that construction work is scheduled to last three years.

The Thai plant, to be located in Royong province's WHA Rayong Industrial Land, will mainly make Dechang's existing appliances, with a building period of two years, the company said. The project is still subject to approval by regulators in both countries.

The Ningbo project will help expand Dechang's offering and boost its competitiveness and profitability, the firm said, while the Thai project will help it make good use of local industrial fundamentals and geographical advantages to better serve overseas clients and reduce the possible adverse impact of the changing international trading environment, it added.

Dechang, an original design manufacturer and equipment manufacturer, counts world-renowned appliance makers, brands, and regional leaders among its main clients. Overseas revenue accounted for nearly 78 percent of its total income last year, per its annual financial report.

Dust collectors, personal care devices, and environment-cleaning appliances are among the firm’s main products. It has a dust collector plant in Vietnam's Dong Nai province that can make 3.8 million units a year and started building another small appliances plant with an annual output capacity of 3 million units last year.

Dechang’s shares [SHA: 605555] ended 1.3 percent lower at CNY21.81 (USD2.99) each in Shanghai today. The stock has lost 4.6 percent this year.

Editor: Martin Kadiev