(Yicai) Nov. 21 -- Ruking Technologies, a Chinese manufacturer of heating, ventilation, air conditioning, and refrigeration parts, intends to build its first overseas factory in Thailand to better serve international clients.

The first phase of the plant, which is expected to cost CNY226 million (USD31.2 million), will produce two million variable-frequency drives and system controllers per year once construction is completed in 12 months, the Shanghai-based firm announced yesterday. The project requires approval from Chinese and Thai regulators.

Variable-frequency drives and system controllers are key components of HVAC/Rs, including heat pumps, commercial and household air conditioners, and refrigeration equipment.

Ruking exports large amounts of such HVAC/R parts, so building a factory in Thailand will help it respond quicker to their needs, the firm pointed out.

Founded in 2003, Ruking researches, develops, and manufactures innovative products in various industries, including HVAC/R, new energy vehicles, and industrial automation, according to its website.

Ruking's revenue from the HVAC/R parts business totaled CNY1.2 billion (USD165.3 million) last year, accounting for nearly 78 percent of the total. Its major domestic and international clients include Emerson Electric, McQuay, Ariston Group, and Haier Group.

Last year, the company's revenue from overseas markets was CNY466 million, accounting for over 30 percent of the total.

Ruking's stock [SHE: 301525] was trading down 1 percent at CNY59.01 (USD8.15) as of lunch break today.

Editor: Futura Costaglione