KUALA LUMPUR (Sept 12): Electrical home appliance distributor Fiamma Holdings Bhd (KL:FIAMMA) has signed a memorandum of understanding with Guangdong-based Zhuhai Samyou Environmental Technology Co Ltd (Samyou) to establish an air conditioning (AC) production facility in Malaysia.

This will mark Samyou’s first plant outside of China.

Samyou specialises in heating, ventilation, AC, and control systems (HVAC) for residential, commercial, and industrial markets, and is known for its "VINO" air conditioning brand.

"We are pleased to partner with Samyou in a collaboration that aligns with our forward-looking strategy," Fiamma’s group chief executive officer Jimmy Tan said in a statement. "We are expanding our extensive portfolio to include Samyou’s 'VINO' brand, which offers smart, eco-friendly, and energy-efficient AC solutions to meet strong domestic demand."

Tan said the Malaysian AC market was valued at US$758.25 million (RM3.3 billion) in 2023 and is projected to grow by 6.73% annually until 2029.

“With over four decades of experience in consumer electronics and a distribution network of more than 2,000 touchpoints, we are well-positioned to leverage this collaboration to capture market share and drive sustainable growth,” Tan added.

Samyou’s founder and chairman Xiao Youyuan said his company is committed to developing current and next-generation AC products in Malaysia, leveraging the country's strategic location, skilled workforce, and supportive policies.

“We are dedicating our resources to launch our AC facility by mid-2025, positioning us to reach our international sales target of US$100 million (RM434.2 million) within the next three years,” Xiao said.

Shares of Fiamma settled two sen or 1.75% lower at RM1.12 on Thursday, giving the group a market capitalisation of RM593.85 million.