GM opens $200m diesel-engine plant in Rayong
General Motors yesterday opened a US$200 million (Bt6 billion) diesel-engine plant in Rayong, adjacent to the automaker's vehicle-manufacturing plant.
The 34-rai facility, GM's first diesel-engine plant in the region, is the first in the world to produce the firm's new Duramax four-cylinder diesel engines.
The plant has the capacity to manufacture approximately 120,000 engines per year for use in vehicles built in Thailand and other global markets. GM expects to source $94 million worth of Thai-built components for the production of engines at the facility by next year.
The first engines to be manufactured by the facility will be installed in the new Chevrolet Colorado pickup, which will be produced in Rayong following engineering development work and retooling of the vehicle assembly line.
GM Thailand said in a statement released to the media that its new powertrain facility is a key component of its Southeast Asia growth strategy.
The opening of the facility comes a month after GM announced that it will invest $150 million in the reactivation of its Bekasi manufacturing facility in Indonesia for production of a new line of people-movers for Southeast Asian markets. The new powertrain facility takes GM's investment in Thailand to $1.3 billion since 1998.
GM Southeast Asia president Martin Apfel was joined by Industry Ministry Permanent Secretary Dr Witoon Simachokdee and Michael McGee, commercial counselor at the US Embassy, for the inauguration of the new plant. GM Thailand employees, local GM dealers, suppliers and the media were also present.
The new powertrain facility, which will have 500 employees by the end of the year, has a compact manufacturing footprint, according to the firm. The plant features computer and laser-guided equipment to enhance precision and ensure high build quality. It is extremely flexible, GM said, with the ability to switch between production of 2.5-litre and 2.8-litre engine variants in line with changing market demand.
The plant has adopted technologies to keep the facility dust free and is fully climate controlled to manage humidity and create the most suitable environment for quality engine production, GM said.
GM Thailand said it has also employed advanced environmental-protection processes throughout the facility, including using lighting that consumes 40 percent less energy than do regular systems.
