Current Issue

TrelleborgVibracoustic establishes first plant in Thailand

Comments Email
TrelleborgVibracoustic Thailand
TrelleborgVibracoustic is expanding its presence in Asia with a manufacturing facility in Thailand (left). It is the firm's 39th facility worldwide and will be the company's first in the country.

DARMSTADT, Germany—Anti-vibration product manufacturer TrelleborgVibracoustic will expand its presence in Asia with the addition of a plant in Thailand.

TrelleborgVibracoustic is leasing a facility in Rayong, Thailand, in order to speed up the process of setting up production in the country, a spokeswoman said. The firm did not disclose the cost of the project.

The factory, the company's 39th globally, is TrelleborgVibracoustic's first in the country, she said. “In fact, this is the first plant of a western supplier for automotive anti-vibration solutions in Thailand.”

New machinery has been purchased for the site and will be installed once the structure is refurbished completely.

Work on the factory has begun and is expected to be completed in the second quarter of 2015, the spokeswoman said, adding that the plant will produce engine mounts, chassis components and dampers.

TrelleborgVibracoustic estimates the production space that initially will be available at about 39,300 square feet. The factory can be expanded another 21,500 square feet if product demand creates the need for more.

It did not give the size of the work force that will be in place when the factory opens next year, but said it will employ around 200 in the upcoming years.

“With the new production site in Rayong, TrelleborgVibracoustic is strengthening its international presence in one of the most important growth markets in the world,” according to Hans-Jurgen Goslar, CEO of the company.

Its selection of Rayong as the location for the facility gives the company the best conditions to serve customers in Thailand directly, said Matthias Sckuhr, regional president for China/Asia Pacific.

Customer proximity, logistical connections and the availability of qualified employees were the key criteria for selecting the location, the company said. “Customers will also save in terms of logistics costs, tax and import duties, thanks to this investment,” Sckuhr said.

With the additional capacity from the new plant, the spokeswoman said, the company will be able to serve Thai customers as well as other Asian countries. “We will be supplying products to global platforms of OEMs.”

While the majority will be sold in Asia, the company in the long run plans to use the Thailand factory to supply Japanese OEMs, she said.

In general, demand for chassis, engine mounts and dampers for different uses is high in Asia because they reduce vibrations for power trains and chassis, the spokeswoman said, which increases driving comfort.

By improved direct links to locally producing manufacturers, the company expects to achieve further growth in the region, the firm said.

It cited a study undertaken by the Asia Connect Center at the University of St. Gallen in Switzerland that maintains the Thai automotive industry is developing rapidly. With about 2.5 million vehicles produced in 2013, it was the ninth largest vehicle-producing nation in the world.