The inauguration ceremony for an air conditioner factory funded by AUX Group is held in Thailand on Aug 24. [Photo/ cnnb.com.cn]

An air conditioner factory funded by AUX Group was inaugurated in Thailand on Aug 24, local media reported.

The factory is the first overseas plant established by the Ningbo-headquartered company and comes as part of the company's broader push to expand into the ASEAN market, particularly Thailand, under the framework of China's Belt and Road Initiative.

Established in 1986, AUX Group dabbles in a number of different industries, including home appliances, electrical equipment, medical services, real estate and financial investment.

With a price tag of 1.5 billion yuan ($223.8 million), the plant, situated in the Thai-Chinese Rayong Industrial Zone on the east coast of Thailand, will be put into use by the end of the year.

After the first phase of construction, the plant will have a capacity of 1.1 million air conditioning units, and that number is projected to reach three million after the second phase is completed.

The Thai-Chinese Rayong Industrial Zone, jointly developed by investors from China and Thailand, is designated as China's national overseas Economic & Trade Cooperation Zone.

Chidchai Vanasatidya, chairman of the industrial zone and former deputy prime minister of Thailand, said that an increasing number of Chinese companies are expanding their presence overseas in response to the complex and volatile global trade landscape.

The intention of establishing the industrial zone is to provide a service platform for Chinese enterprises hoping to leverage Thailand's open trade environment and preferential investment policies, continued Vanasatidya, adding that the arrival of AUX, a renowned air conditioner brand in China, has the potential to inject new vitality into Thailand's air conditioner industry.

Official data shows the population of ASEAN's 11 member states, including Thailand, totaled 642 million. That, coupled with the tropical climate, has spawned a huge demand for air conditioning. Thailand has the second largest air conditioning market in Southeast Asia, accounting for 20 percent of the total in the region. It is also the second largest air conditioner producer and exporter in the world, second only to China.