Toyota to hike engine output
Toyota Motor Corporation of Japan yesterday announced a Bt6-billion investment to increase its engine production in Thailand, showing yet another mark of confidence in the Thai economy despite the great floods last year.
In a statement, the company said the investment through Siam Toyota Manufacturing Co (STM) would raise the production capacity of Toyota Corolla ZR petrol engines by 100,000 units annually, creating about 200 additional jobs, from 3,000 at present. The expansion will include increasing the capacity for the casting of aluminium materials. The expansion programme at the plant in Amata Nakorn Industrial Estate, Chon Buri, is projected to be completed in 2014.
STM is the main engine-manufacturing facility for the complete line-up of Toyota vehicles available in Thailand as well as for export markets. Since the foundation of STM, the plant has manufactured a high volume of diesel engines to meet demand for commercial vehicles. The new investment follows the growing demand for passenger cars in the Asia-Pacific region.
After the investment, STM’s annual production capacity will be 840,000 engines, or about 10 per cent of Toyota’s global production.
The investment will also include installation of additional manufacturing lines for the casting of aluminium materials at STM, which are important parts for the Toyota Corolla engine.
"In total, the investment will help enhance the competitiveness of Thailand’s automotive production and promote the use of locally manufactured auto parts. In addition, Toyota ZR petrol engines will be exported to Toyota affiliates in the Asia-Pacific region such as Vietnam and Taiwan, resulting in a minimum income contributed to Thailand of Bt3 billion annually," Toyota said in the statement.
STM is 96 per cent owned by TMC and 4 per cent by Siam Cement.
