Thailand’s Interhides (IHL) is expanding its car seat cover operations in response to stronger demand from domestic and overseas automakers.

The company is building a new THB92m (USD2.9m) leather seat cover plant in Bangpu Industrial Estate which it expects will help lift exports to 30-40% of total revenues from next year, from 20% at present.

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The new plant will help increase the company’s leather processing capacity by 50%, from 2.5m sq ft per month to 3-4m. Managing director Ongart Thumrongsakulvong said “the additional capacity will help strengthen our customer base in Europe and in other Asian countries”.

IHL’s revenues are expected to increase by 30% to THB 18-19bn this year – mostly as a result of a sharp recovery in vehicle demand in Thailand. Ongart also sees significant growth potential over the next few years as the country’s ‘eco-car’ segment expands.

Tony Pugliese

GlobalData Strategic Intelligence

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