KUALA LUMPUR: Johnson Controls Inc, the United States-based owner of the York brand of air-conditioning equipment, is taking back distribution of its products in Malaysia starting next month to handle the job itself.

York Malaysia Sales and Service Sdn Bhd (YMSS) general manager Tang Siew Hao said the move will enable it to better serve its customers in the country.

"We have come up with an action plan to address the needs of our customers in different market segments. We will also be launching several new products that the general public is looking for," he told a media briefing recently.

"After taking over the distributorship, we also plan to strengthen our aftersales service to meet customer demand," Tang added.

YMSS has four offices in Petaling Jaya, Penang, Johor Baru and Kota Kinabalu and three service branches in Kemaman, Kuching and Melaka.

"We will certainly open more service branches across the country," Tang said, adding that more details will be disclosed on July 1 at the relaunching event.

Johnson Controls in September last year acquired OYL Manufacturing Co Sdn Bhd's 70% stake in its joint venture firm YMSS. Following the deal, YMSS has become a wholly-owned subsidiary of Johnson Controls.

Under the terms of the sale and purchase agreement, York's unitary products will continue to be distributed by OYL Manufacturing's subsidiary Group Associated Sdn Bhd until tomorrow. 

Commenting on the acquisition, Tang said the move paves the way for YMSS to tap Johnson Control's global network of resources and expertise, including its 170,000 employees worldwide.

"We will leverage on the strength of Johnson Control's footprint in Asian countries such as Thailand, Singapore and China, to establish a holistic supply and marketing chain," he said.

For instance, Malaysia will be the hub for exporting York industrial and commercial air conditioners to other regional markets.

"Thailand's strength is in technology, while China is an expert in manufacturing residential air-conditioning units. We will exchange knowledge and grow from there," said Tang.

On prospects, Tang said the Malaysian air-conditioning market remains robust and the group will continue to expand its market share in all the three segments — residential, industrial and commercial.

York currently commands a 30% share of the residential and commercial air-conditioning market in Malaysia.

Citing a survey from the Building Services Research and Information Association, Tang said Malaysia's split systems market is estimated to hit 1.23 million units worth US$574.3 million (RM2.06 billion) in 2015.

In tropical countries like Malaysia, Tang said air conditioners have become a necessity. "We also see some uptick in the replacement market, where consumers are considering replacing their current units with those of newer technologies, which are more energy-efficient and provide constant temperature."

This article first appeared in The Edge Financial Daily, on June 29, 2015.