Toto Ltd, a Japanese sanitaryware manufacturer, has announced an investment of ¥3.7 billion (1.073 billion baht) for a third plant in Saraburi province to produce electronic toilet seats with bidet functions.
Toto wants to focus on manufacturing the Washlet brand in Thailand after making electronic toilet seats in Japan, China and Malaysia.
The Fukuoka-based parent firm laid the foundation stone for the third plant on May 8. The new plant is adjacent to the first and second sites in WHA Saraburi Industrial Land, formerly Hemaraj Saraburi.
Hiroyuki Suzuki, president of local subsidiary Toto Thailand, said the new plant covers 49,000 square metres and is expected to produce 450,000 electronic toilet seats per year.
Some 90% of its production is set to serve Toto's export market in Asia, Oceania and the US.
Toto plans to hire roughly 600 employees for the third site.
"Construction of the new factory will begin this month and production will start in April 2020," said Mr Suzuki. "The investment is part of Toto Group's strategy to expand its global market [reach] through the Washlet brand from 2018."
He said the overall electronic industry in Thailand is suitable to localise high-end products like electronic toilet seats because the country is a global production hub for related sectors.
Toto entered Thailand with Siam Sanitary Ware Co as a joint venture to trade its products in 1986. The company started manufacturing locally in November 2009 with registered capital of 1.63 billion baht.
Toto's first plant has total production capacity of 500,000 pieces per year for toilets, lavatories and other items made from ceramics, as well as 115,000 lavatory, bath and auto faucets at a proportion of 25%, 45% and 30%, respectively.
Over 1,100 people are employed at the first plant.
Toto also set up a technical centre in Bangkok in March 2017.
In May 2017, Toto announced a 2.88-billion-baht investment for its second plant in Saraburi to make 420,000 pieces of ceramic sanitaryware pieces per year.
Mr Suzuki said the second plant is scheduled to begin operations next April, with Toto having already finished construction. The facility is waiting to have machinery installed, after which 500-600 people will be hired.
The two plants cover an area spanning 100,000 sq m. Once the second facility goes online, Thailand will be the fourth-largest manufacturing base for Toto after Japan, China and Vietnam.
At home, Toto expects 20% revenue growth every year. Around 60% of its revenue is from retail customers, while the rest is for property projects such as hotels and condominiums.
He said the parent firm has a midterm plan, "Toto Will 2022", which entails exporting more than 2 million Washlet brand items globally by 2022. Toto had accumulated sales of 40 million pieces as of 2015.
He said the company has set an ambitious goal for Toto to double revenue and market share in Thailand, even though it has a limited share here, focusing only on high-end products.
Washlet branded products costs range from 25,100-198,000 baht.
