Continental is ramping up production in Thailand
The Thai Board of Investment (BOI) has approved a project by Continental, which plans to allocate 1.34 billion baht (400 million dollars) to expand its tire plant in Rayong Province and increase its capacity by 3 million tires, which "confirms Thailand's status as the world's second-largest tire producer".
The project involves the construction of an additional building and the installation of new equipment imported from Germany, with capacity increasing to 7.8 million tires per year, and the number of jobs from 900 to 1,500. The plant produces tires for motorcycles, passenger and light commercial vehicles, including electric cars, and natural rubber and other raw materials are sourced domestically.
"Continental's investment confirms Thailand's high potential as a world-class tire producer that meets the strictest quality standards in terms of both safety and environmental protection," said Narit Therdsteerasukdi, Secretary-General of the BOI. "The expansion of Continental's plant also strengthens Thailand's position as a hub for the automotive industry and demonstrates the trust of foreign investors."
Continental's subsidiary in Thailand, Continental Tyres (Thailand), was established in 2009, and tire production in Rayong started five years ago.
The BOI notes that most leading tire companies now have their own facilities in Thailand, making the country "the world's second-largest tire producer and exporter after China". For example, Michelin, Bridgestone, Sumitomo, Yokohama, and Goodyear, as well as Chinese companies ZC Rubber, Prinx, Chengshan, Linglong, and Sentury have opened plants in Thailand. Since 2020, tire manufacturers have submitted 41 applications for new investment projects to the BOI, with a total value of over 112 billion baht (3.35 billion dollars).
In 2023, Thailand ranked 10th in the world and 1st in Southeast Asia in terms of vehicle production, and the BOI says that investors are attracted by the government's policy of providing subsidies, tax incentives, and other benefits, as well as the country's strategic location, etc.