Mitsubishi-Fuso Truck & Bus Corporation (MFTBC) announced it would build a new heavy truck assembly plant in Thailand.
The company said it plans to spend EUR12m on a 7,000sq m factory in Rayong for the assembly of up to 4,000 trucks annually. Most of these will be Fuso trucks although a lower volume of Mercedes-Benz trucks will also be assembled.
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A new company called Daimler Commercial Vehicles Manufacturing Thailand has been established to manage the operation.
Construction of the plant will start in October this year with completion due mid-2019. The first model to be produced will be the Fuso FJ 2528C truck from knocked down (KD) kits.
The group has also consolidated its existing Thai Fuso and Mercedes-Benz truck and bus operations under local distributor Daimler Commercial Vehicles Thailand (DCVT).
Local assembly is regarded as an essential prerequisite for any company to develop a significant presence in the Thai commercial vehicle market due to the country's high import tariffs.
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By GlobalDataMichael Kamper, head of sales & marketing at MFTBC, said: "Thailand, with its conducive business environment and strategic location in southeast Asia, represents a key market for our global growth strategy."
