Industry News

Continental to Build New Tire Plant in Thailand

German tire manufacturer giant to strengthen its position in the APAC region by establishing its new tire manufacturing plant in Thailand

Thailand: Continental AG plans to build its new tire manufacturing facility in Thailand, wherein, the construction of the plant is anticipated to start, later this year, however, the production is expected to initiate from 2019.

In addition to that, the company’s plant is expected to establish in the province of Rayong, on a 750,000 squared-meters area, with an investment of about USD265 million and is anticipated to produce nearly 4 million light truck and passenger tires annually with a workforce of about 900 employees in its initial phase. The new plant is almost 140km from Bangkok and around 60km from a deep-sea port in Laem Chabang.

“The investment in Thailand is another major step in realizing the ambitious growth plans of our Vision 2025 by further improving the balance of our global manufacturing footprint and enhancing our position as one of the technologically leading tire manufacturers worldwide," says Nikolai Setzer, a member of Continental's executive board in charge of the tire division, he further added, "One important pillar of our long-term strategy is to operate with an agile and flexible set-up that enables us to react fast to the market requirements, establish further production capacities in the growth region (Asia Pacific) and to strongly support our Asia Pacific growth plans with high-tech production capabilities."

As per TechSci Research, with the establishment of company’s new tire plant, Continental is further anticipated to capture the growing demand for tires in the country. Furthermore, the move is also anticipated to strengthen Continental’s position in Thailand and boost the company’s sales’ all across the Asia-Pacific region in coming years.

According to a recent report published by TechSci Research, Thailand Tyre Market Forecast & Opportunities, 2020’’, Thailand has emerged as one of the most preferred destinations for automobile production for various leading global automotive players due to availability of cheap labor and geographical advantage of its location in the ASEAN (Association of Southeast Asian Nations) region. Thailand is the leading rubber producing country worldwide, and accounted for around one-third of the global rubber production in 2014. Major global automotive OEMs such as General Motors, Toyota, Honda, Mitsubishi, Honda, Isuzu, Ford, Nissan, etc., have established their manufacturing plants in Thailand, in order to address increasing domestic as well as global demand for automobiles, which in turn, has been surging demand for automotive tires in the country.

 

Relevant Reports

Global Automotive Fuel Tank Market By Vehicle Type (Passenger Cars, Two-Wheelers and Commercial Vehicles), By Capacity (<15L, 15L-45L, 45L-70L & >70L), By Region, Competition, Forecast & Opportunities,

Automotive | Sep, 2020

Increasing vehicle production and stringent norms imposed by governments towards reducing vehicle weight and lower fuel consumption is driving automotive fuel tank market

Relevant News