Thai vehicle assembler and parts maker Thai Rung Union is to spend THB500m (US$17m) to expand production capacity and raise revenue by 15% this year.
Managing director Sompong Phaoenchoke told the Bangkok Post auto industry output in Thailand is expected to increase to 2.81m vehicles this year from 2.45m last year.
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By GlobalDataHe said: “We projected the growth of the industry base on the fundamentals of the Thai economy. Since it has an indicator that demand for the auto industry is rising, the production side needs to boost output to serve demand.”
By the end of 2013, TRU will be running all production lines at its Bangkok and Rayong factories at full capacity and almost half the announced spend will be on machinery for Rayong.
The remainder will be spent on a new paint plant at a location still to be identified. Sompong said TRU is considering whether to fund by itself or with a Japanese partner.
The Thai company’s strengths are tooling, painting, assembly and serving as a component OEM. Last year’s sales totalled THB3.78bn, up 67% from 2011.
Some 56% of that came from tooling and OEM parts, 34% from painting and assembly and 10% from custom vehicles and sales and service centres.
