Chinese home appliance maker Midea Group held a groundbreaking ceremony on Thursday for its new plant in Brazil, the company's latest move in the expansion of its footprint in the South American country.

The new factory in Brazil will effectively enhance Midea's competitiveness in the local market, the company said, adding it has great confidence in the Brazilian market and will further increase its investment there.

With total investment of more than 700 million yuan ($101.8 million), the new factory is expected to be completed and put into operation in July 2024. It covers an area of over 70,000 square meters and has an annual production capacity of 1.3 million units.

The company said the new factory, located in Pouso Alegre and Midea's third in Brazil, will integrate digital and innovative production technologies, and its first batch of intelligent refrigerators will be produced in July 2024. The products will be sold to Brazil and other South American markets.

Wang Jianguo, vice-president of Midea Group and president of Midea's smart home business group, said the factory is Midea's first investment in Pouso Alegre.

Brazil is the largest white goods market in South America. As one of Midea's important strategic markets overseas, the company has two factories in Brazil, one located in Manaus producing household air conditioners and microwave ovens, and another in Canoas making commercial air conditioners.