RAYONG, Thailand—Continental A.G. has chosen a site in Rayong to construct a car and light truck tire manufacturing plant.
The operation is projected to be operational by 2019. Continental plans to break ground later this year and has budgeted about $265 million for phase one, which will employ about 900 once complete. Conti expects the first phase to be complete by 2022 with production reaching 4 million tires per year at that time.
The firm has enough space to increase production to 25 million tires annually if needed. A company spokesman said via email that the firm would execute this in five additional phases, each requiring an additional investment of about $214 million.
The spokesman said that the new plant will further balance its manufacturing footprint in Asia-Pacific. This will be Conti's sixth plant in the region, with others in Hefei, China; Alor Setar and Petaling Jaya, Malaysia; Modipuram, India; and Kalutara, Sri Lanka.
Rayong was chosen because of its short distance to Bangkok, size of the site and its close proximity to the technical university, the spokesman said. Rayong also is about 35 miles from the deep-sea port in Laem Chabang. Continental added that the Thai government and other local institutions were very supportive partners during the selection process.