Close ties with Society

Supporting local elementary schools for more than a decade

Since 1998, Mitsubishi Heavy Industries-Mahajak Air Conditioners Co., Ltd. (MACO) of Thailand, a core company in the MHI Group's air-conditioning business, has been donating elementary school buildings and classrooms in impoverished regions of that country.
This initiative started with the idea of helping, even modestly, toward resolving two of Thailand's major social issues: economic and educational disparities between the country's metropolitan region and rural areas. Local employees are involved in all phases from recipient selection to construction management.

Regions receiving elementary school support

• Phitsanulok (1998, 2010)
• Phtchabun (1998, 2007)
• Ubonratchathani (1999)
• Loei (2000)
• Buriram (2001)
• Uthaithani (2002)
• Mahasarakham (2003)
• Sakaeo (2004)
• Chaiyaphum (2005)
• Nakhonratchasima (2006)
• Uttaradit (2008)

Figures in parentheses, ( ), indicate the year of introduction.

Process from recipient selection to school dedication

Graduates of support-receiving elementary schools (cumulative totals)

MACO Corporate Profile (As of January 2011)

• Capitalization: 1,216 million Thai baht (approx. 3.6 billion yen)
• Employees: 2,322 (including 27 Japanese)
• Annual production: 796,000 residential air-conditioners, 258,900 commercial air-conditioners
• Sales breakdown: Southeast Asia & Oceania 50 percent (Thailand 13 percent), Europe 33 percent, Japan 17 percent

A company deeply rooted in Thai society

MACO, a manufacturer of air-conditioning equipment located in an industrial zone on the outskirts of Bangkok, was established in 1988 as a joint venture with Mahajak Industry Co., Ltd., one of MHI's local partners. Initially, MACO was involved mainly in the manufacture of residential air-conditioners, but as MHI's global air-conditioning business grew the JV expanded its operations to include procurement and sales as well as the manufacture of commercial air-conditioners. MACO has now grown to become a core company in MHI's air-conditioner business.
Since its establishment MACO has pursued a management policy focused on localization, with the aim of setting down firm roots in Thai society. In 2003, when it came to function as a manufacturer, it adopted the slogan "The Spirit of Independence" as a clear indicator of its intention to grow and develop in step with the Thai people.

Assembling air-conditioner outdoor units

Focus on cultivating employees' business operating skills

To boost the business operating skills of its local Thai employees, MACO has proactively transferred technologies and promoted outstanding workers to management positions. The company also applies employees' opinions and requests toward improving the in-house work environment, and it has also promoted English-language education, technical training on a department-wide basis, and long-term training in Japan. In 2010, MACO also began holding training sessions covering CSR concepts, the company's business philosophy, and the basics of what it means to be part of a business corporation.
The company has also put in place a system enabling employees to screen and select suppliers based on objective criteria. Furthermore, it treats all its suppliers like "partners," as a way of building win-win relationships.

Training session for sales distributor employees

Addressing the issue of education in Thai society

For many years MACO has contributed to the development of the Thai economy by creating employment, boosting exports and transferring technology. Then 13 years ago, out of a desire to contribute more directly to resolving the country's social issues, MACO embarked on an initiative to support elementary schools.
Thailand's economy continues to grow at an average rate of around 4 percent per year. However, political and economic activities are concentrated in Bangkok, and the income gap between the metropolitan center and rural areas is higher than two to one in some instances. This level of economic disparity contributes to a gap in education as well, and some children in impoverished regions are unable to complete their compulsory schooling. Furthermore, some schools lack sufficient facilities and educational materials.
Many of MACO's employees hail from outlying areas. To help ensure that the children in their hometowns have access to a good education as a way of improving Thai society, in 1998, on the occasion of its 10th anniversary in business, MACO resolved to address the educational issue head-on by launching activities to support elementary schools.

Compiled based on the United Nations Development Programme's Thailand Human Development Report 2009

Local employees directly support their hometown elementary schools

An employee volunteer organization, the Working Committee, plays the central role in elementary school support activities. The committee also plans and conducts in-house activities, including initiatives to improve employees' work environment and society in general.
Support activities target schools in Thailand's impoverished north and northeastern regions. Each year one school is selected among those meeting the following three criteria: it must be in an employee's hometown, it must face a shortage of facilities and equipment, and teachers and community residents must have an eager desire to improve their schools. The selected school receives aid in line with its requests for items that it lacks: for example, school buildings, a gymnasium, cafeteria, toilets or various types of equipment.
A major feature of the program is that rather than simply donating money, MACO itself orders the construction work, oversees construction, and then donates a completed physical entity to the school. This approach allows the company to maximize its contribution within the available budget. The budget for such a project is 1 million baht (approx. 3 million yen), and a supplementary budget is provided to cover any small excess outlays. Each year, MHI labor union employees (Nagoya Air-Conditioning & Refrigeration Machinery Works) also provide donations of money, clothing, school equipment, sporting goods, etc.

Process from recipient selection to school dedication

• Selection of recipient candidates from provincial and government lists
• Exploratory visits to candidate sites
• After meetings with school principals and local communities, final selection of recipient
• Determination of support content
• Selection of contractor, etc.; management of construction progress
• Upon completion of construction, formal dedication and transfer

Kindergarten buildings and playground equipment provided in fiscal 2010

In 2010, the company supported the Ban-Mai-Tong Prasert School in Phitsanulok, northern Thailand. Attending the school are 132 elementary school children and 59 kindergarteners - a total of 191 students - but there were only six classrooms for children spanning nine school years (three years of kindergarten, six years of elementary school). As a result, while elementary students would be studying in their classrooms, kindergarteners would simultaneously be at play in the same room.
MACO decided to build and donate a new building with three classrooms for kindergarten students, as well as playground equipment. Construction commenced in May, with cooperation from students, their parents/guardians and other local people-as well as a large number of MACO employee volunteers participating in the construction process.
The newly completed facility was handed over formally at a ceremony in November - thus adding a well-equipped playground and making it possible for students of each school year to have their own classroom.
In fiscal 2011, MACO plans to donate four classrooms, toilets and other facilities to Ban kamhuachang-non tun-pa ma-naow School in Khon Kaen Province, in northeastern Thailand.

Children at the Ban-Mai-Tong Prasert School

Our responsibilities and our actions

I believe that creating better learning environments for children will make this a better country.

Sunthon Duangsri
Assistant Manager
Assembly Team, Production Department

Athikorn Rattanachai
Manager
General Affairs Department

This project can be difficult, as the committee handles everything from selecting the school to getting ready for construction, to actually overseeing the construction. But at the same time, this level of involvement makes it all worthwhile. Witnessing the joy on the faces of the donor school's teachers and students, as well as other people in the community, makes us happy, too.
This project has received high praise from the government and local municipal organizations, but what is even more gratifying is to know that we are building learning environments for children. Many of our co-workers come from poor areas, and we believe that by improving the learning environments in their hometowns, children will grow into responsible adults and Thailand will become a better country.

Expectations of MHI

We are very grateful to MACO for its support in enhancing our school's educational environment.

Winyou Duangmanee
Principal, Ban-Mai-Tong Prasert School

Several years ago, people in the local community got together to set up a school cafeteria as part of an aim to enhance the educational environment. The number of students increased as a result, so we were left with the chronic problem of having too few classrooms. But now, thanks to MACO's donation of a school building, students in each school year can study in their own classroom. As school principal, I am very grateful. Now, the number of students and parents seeing our new building and wanting to transfer to our school is increasing steadily.
At present, Thailand has some 40,000 public schools, many of which suffer from shortages of classrooms and educational materials. As an educator who bemoans this situation, I hope that MACO will continue this school support project, enhancing educational environments all around our country.