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Appliance maker Midea inaugurates its first wholly owned factory in Brazil

The Pouso Alegre site has a production capacity of 1.3 million units annually and follows sustainability and innovation standards set by the World Economic Forum
  • The new factory will be Midea’s third in Brazil, following one in the state of Amazonas and another in the state of Rio Grande do Sul

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UPDATED: 16 Dec 2024, 8:11 am

Chinese home appliance giant Midea Group has announced the opening of its new Brazilian factory in Pouso Alegre, a city in the southeastern state of Minas Gerais. The official inauguration was held on 9 December, reports Brazilian outlet Diário do Comércio.

The sprawling factory covers an area of 73,000 square metres and has the capacity to produce 700,000 refrigerators and 600,000 washing machines annually. Midea Carrier CEO Felipe Costa told reporters that the company aims to reach maximum production potential in two years. 

While the factory will be employing 700 employees initially, Midea expects to increase this to 1,000 jobs by December 2025. Mayor Coronel Dimas said he believes the factory could transform the municipality into a hub for the home appliances, as the investment has already triggered conversations about similar manufacturers coming to Pouso Alegre.

The new factory will be Midea’s third in Brazil, following the Manaus (Amazonas) site, which produces household air conditioners and microwaves, and the Canoas (Rio Grande do Sul) site, which makes commercial air conditioners. While the previous two are operated in partnership with Carrier, Pouso Alegre is Midea’s first wholly owned unit in Brazil.

[See more: Chinese auto giant GWM gears up to open a factory in Brazil]

Midea began construction on the Pouso Alegre factory in April 2023, timing the announcement to coincide with a state visit to Beijing by Brazilian President Luiz Inácio Lula da Silva. Valued at 630 million reais (US$104.26 million), it is considered the largest investment in the Brazilian home appliance industry in the last decade.

The Pouso Alegre unit was developed based on the Lighthouse standards championed by the World Economic Forum (WEF). Manufacturers who show leadership in their use of Fourth Industrial Revolution (4IR) technologies are recognised as part of the Global Lighthouse Network, which the WEF says aims to “accelerate a more comprehensive and inclusive adoption of advanced technologies in manufacturing”.

Midea’s commitment to sustainable practices began closer to home with Midea Hefei, recognised by the WEF for its implementation of 24 4IR uses cases to reduce emissions and optimise energy use at the site. 

Solar now accounts for 31 percent of energy used by Midea. Some 40 percent of water is recycled and waste has been reduced by 22.1 percent. Once certified, the Pouso Alegre factory will become the seventh Lighthouse plant in Latin America and the fifth in Brazil, alongside sites operated by Flex, Unilever, Renault and MODAC.

UPDATED: 16 Dec 2024, 8:11 am

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