Thailand : Toyota plans Bht. 8.2-billion expansion

Toyota D-4D Diesel Engine

Bangkok : Dec. 10, 2008 - Toyota Motor is to invest about 8.2 billion baht in Thailand to build common-rail diesel engines in Thailand for compact-sized trucks, but is laying off 1,000 more subcontract workers here in response to a global market slump.


In its investment proposal endorsed by the Board of Investment (BoI) yesterday, Siam Toyota Manufacturing, a subsidiary that manufactures engines for Toyota's assembly plants in Thailand, will produce 400,320 KD engines for Toyota Vigo and Toyota Fortuner models.

The Thai unit of Toyota expects demand for its diesel engines to reach 300,000 units in Thailand in the next two years, the BoI said in a statement.

But it is unclear when the investment will be made as Toyota Motor Thailand (TMT) is reviewing its investment plans in light of weaker export demand due to world recession.

TMT, Thailand's biggest carmaker, has announced it will terminate the contracts of about 100,000 subcontracted workers at its Ban Po and Samrong plants, which produce Hilux Vigo models for exports and domestic markets under the IMV (international multi-purpose vehicle) project.

The automaker had earlier announced the dismissal of 350 outsourced staff at its Gateway factory. The company intends to cuts its production by 20% between December and April and now aims to roll out 470,000 units in 2009, down from this year's target of 570,000 units.

The Toyota project was among 10 proposals with a combined capital outlay of 56.34 billion baht approved by the BoI yesterday.

The projects included Glow Energy Plc's investment of 16.89 billion baht in expanding its gas-fired power generating capacity by 400 megawatts and 120 tonnes per hour of steam to serve petrochemical clients in Map Ta Phut Industrial Estate..

[Source : Bangkok Post]