The Thailand Board of Investment (BOI) has approved the investment promotion application by Continental AG group's Continental Tyres (Thailand) Co., Ltd. to spend a total of 13.4 billion baht (ca. USD400 million) to expand its tyre plant in Rayong Province and boost annual production by an additional 3 million high-performance radial tires, mostly for export.
The BOI notes Thailand's status as the ‘world's second largest tyre production base’.
Conti plans to boost its Thai tyre output to 7.8 million tyres per year.
The additional investment, including the construction of a new factory building, the extension of the existing plant, located in the WHA Industrial Estate Eastern Seaboard 4, and the installation of new machinery imported from Germany, will boost output at the site to 7.8 million tyres per year, and increase employment by 600 to a total staff of 1,500.
The facility is using locally produced natural rubber and other raw materials to make tyres for motorcycle, light trucks, and passenger cars, including electric vehicles.
"Continental's move demonstrates Thailand's potential as a world-class production base for tires featuring the highest quality standards, both in terms of safety and environmental considerations," said Mr. Narit Therdsteerasukdi, Secretary General of the BOI. "This major expansion by Continental also reinforces Thailand's status as an automotive industry hub, and reconfirms global investor's confidence in Thailand."
Continental Tyres (Thailand) was established in 2009 as a fully owned unit of Continental Group. Continental’s tyre production in Rayong started five years ago.
Like Continental, most leading tyre manufacturers already have significant investments in Thailand, making the country the world's second largest tyre production and export base, after China. Other tyre manufacturers with production bases in Thailand include Michelin from France, Bridgestone, Sumitomo Rubber and Yokohama Tire from Japan, Goodyear from the USA, as well as Zhongshe Rubber, Prinx Chengshan Tire, Linglong Tire, and Century Tire from China.
