General Motors has opened a THB6bn (US$200m) diesel engine facility next to its Rayong manufacturing plant.

The facility is GM’s first diesel engine plant in the region and also the first global facility to produce the all-new family of Duramax 2.5 and 2.8-litre four-cylinder diesel engines.

The plant has the capability to manufacture some 120,000 engines a year for use in vehicles built in Thailand and other global markets. GM said that it expects to source THB 2.8bn worth of Thai-built components for the production of the engines in Rayong by 2012.

The new powertrain facility takes GM’s investment in Thailand to THB39bn since 1998. The first engines are destined for the all-new Rayong-produced Chevrolet Colorado pickup.

GM has said that it wants to be the leading vehicle and engine manufacturer in South-east Asia and the opening of the diesel plant comes a month after GM announced that it will invest THB4.5bn in the reactivation of its Bekasi manufacturing facility in Indonesia for production of a new line of people carriers for the region.

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