THAILAND: Thai Rung delays expansion citing weak outlook
Thailand’s listed vehicle body assembler and component manufacturer, Thai Rung Union Car, said it would delay construction of a third plant in the country due to the weak domestic market outlook.
The company’s managing director, Sompong Phaoenchoke, said the anticipated decline in domestic sales this year makes it “unnecessary” to expand production capacity at the moment. Overall vehicle production is expected to be flat at 2.45m units this year, he added.
The company in March announced a THB500m expansion, including a new plant with paintshop facilities and additional machinery, with a view to raising revenues by 15% in 2013.