The right fit for growth: HARMAN's manufacturing facility takes shape in APAC

When HARMAN sought to expand its Asia-Pacific (APAC) presence beyond its existing facilities in China and India, the leading automotive electronics manufacturer needed a location where they could scale up production while diversifying their manufacturing footprint and optimising costs.

With that in mind, we assembled a dedicated One JLL team — combining expertise across supply chain network design, location strategy, and project management — to deliver an end-to-end solution for HARMAN’s facility in the Rojana Laemchabang Industrial Estate, Chonburi, Thailand. 

Finding the ideal location 

HARMAN’s ambitious five-year revenue growth plan fuelled their need for a new manufacturing facility focused on producing speakers and electronics, primarily for export to Japan and South Korea. 

Selecting the right location for the new facility was critical. Proximity to automotive manufacturers topped the list of priorities as it allowed HARMAN to leverage established supplier networks to source components locally, and to tap into a readily available pool of skilled talent.

^{An interactive mapping tool was used to visualise talent availability, logistics networks, and proximity to automakers within a targeted radius of each site.}

Utilising data from various sources, our Logistics & Industrial team, alongside HARMAN, embarked on a comprehensive evaluation process to narrow the field from 10 to three top contenders before a final location was eventually selected.  

Joint field visits were arranged to assess potential land plots, hold discussions with developers, and analyse labour and utility costs across multiple sites in each of the three countries. 

Every detail was meticulously compared. For instance, Vietnam initially emerged as a frontrunner with slightly lower labour costs, but its projected wage inflation suggested they might become comparable to Thailand's in a few years. 

Ultimately, Thailand's mature automotive ecosystem, coupled with its political stability, attractive government incentives, and robust logistics infrastructure, made it the perfect fit for HARMAN’s new manufacturing facility. 

Negotiating the right deal

However, securing prime real estate in Thailand’s Eastern Economic Corridor, a hotbed for automakers, proved challenging. 

This is where JLL’s Logistics & Industrial team stepped in and played a pivotal role. The team connected HARMAN with leading property developer ESR, which helped them secure a suitable land plot and pursue a build-to-suit strategy — as opposed to the traditional route of land acquisition and development.

This arrangement leverages ESR’s vast experience to manage the development process on HARMAN’s behalf, greatly reducing the upfront costs and risk for their first foray into Thailand. 

With an eye towards future growth, the JLL team negotiated a favourable rate for an adjacent land parcel of 27,000 sqm within the industrial estate, offering HARMAN the flexibility to scale up their operations seamlessly when needed.

Designing for the future

During the design phase, JLL facilitated intensive workshops with ESR in HARMAN's facilities in China for a critical purpose: gaining a deep understanding of the design and technical specifications required to manufacture the two distinct products, each with its own unique supply chain.

Through this collaborative process with ESR, the JLL team was able to propose a highly customised, future-proof build-to-suit facility design that accommodated the specialised racking system and material handling equipment for both products within a single production layout.

Beyond efficiency, the facility design also prioritised key environmental, social, and governance (ESG) considerations, including the installation of solar panels, to support HARMAN's goal of achieving LEED Gold certification.

From consultant to partner

With the land secured and blueprint finalised, HARMAN’s 47,000-sqm facility is now under construction.  

JLL's Project and Development Services team remains actively involved as HARMAN’s owner’s representative, providing regular updates and oversight on time, budget, and quality of the project every step of the way.

The team reviews key aspects such as mechanical, electrical, and plumbing (MEP) procurement and fit-out costs, while facilitating seamless coordination and collaboration among all stakeholders. 

Through meticulous project planning, rigorous timeline management, and end-to-end oversight, JLL is keeping the new facility on track for a Q4 2025 completion.

This collaborative approach has fostered a deeper relationship with HARMAN, transforming us from consultants to trusted partners supporting their growth across APAC, Europe, and Central America.

Stay tuned for part two, where we'll unveil the site and delve deeper into the project development. 
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