11:28 | 01/12/2015 Economy
Milwaukee based AO Smith Corp (NYSE:AOS), a world leader in the manufacture of water heaters, has unveiled plans to make a series of strategic investments to expand operations into southern Vietnam.
In making the announcement, AO Smith Vice President Wilfried Brower, said the company is banking on the expanding middle class in Vietnam to clamour for the comfort of its hot water heaters.
"We selected southern Vietnam for a number of tactical reasons," he pointed out. "Ho Chi Minh City is one of our key target markets with a growing consumer class interested in premium water heating solutions.
Having already captured the top market share for water heaters in China with its principle manufacturing facilities in Nanjing, China, he said the company believes the move will position it to take over the lead market share in the whole of Vietnam.
AO Smith currently only has revealed plans for sales offices and stocking warehouses judiciously placed throughout the country as well as putting a sales and customer service organization in place.
The company, with gross revenue of US$2.4 billion annually, sells an extensive line of residential and commercial water heaters and boilers with manufacturing operations in the US, China, India, Mexico, Canada, and the Netherlands./.