Thailand approves €360m investment by Continental Tires

Bangkok – Thailand’s board of investment (BOI) has approved a BHT13.4 billion (€365 million) investment by Continental Tires to expand its existing facility in Rayong in southern Thailand.

In a statement on 9 October, the BOI provided further details on the investment initially announced by Continental in July, which had been disclosed with limited information at the time (ERJ report).

According to BOI, the project will increase production capacity for passenger car/light truck tires at the plant by 3 million units per year, bringing total capacity to 7.8 million units.

The project follows an initial €250 million investment in 2017 to establish a 4-million-unit plant for PC/LT tires in Rayong, followed by a €26 million investment in 2019 to build a motorcycle tire plant.

Set for operation in 2029, the expansion project will create 600 jobs, once fully ramped up, brining the total number of workforce at the plant to 1,500 people.

According to the Thai authority, most of the tires produced at the facility will be used for exports, reaffirming Thailand’s position as the world’s second largest tire production base after China.

The facility, BOI said, is using locally produced natural rubber and other raw materials to manufacture its tires.

In addition to Continental, other major tire makers including Michelin, Bridgestone, Sumitomo Rubber Industries, Yokohama Rubber Co. and Goodyear currently operate factories in Thailand.

Furthermore, Chinese majors such as Zhongce Rubber, General Science, Prinx Chengshan, Linglong, and Sentury have production bases in the country.