Goodyear Thailand Plc recently announced its plans to expand its production in PathumThani, a province in the north of Bangkok, by investing US$162 million (around B5.6 billion) to build a new radial aviation tyre factory. The move will allow the company to meet growing demand in the Asia Pacific region.
Managing Director Finbarr O’Connor said in a statement that the expansion will help the tyre maker capture growing demand for radial tyres as commercial airlines are rapidly converting their fleets to radial tyres from bias tyres.
“The world’s aviation fleet continues to grow and is projected to double in size over the next 20 years,” O’Connor said. “The fastest growth is seen in the Asia-Pacific region.”
Ernst & Young Corporate Services Ltd, the financial adviser, reviewed the investment project for the board and concluded it was in the best interest of Goodyear Thailand to move forward, he said.The board, which approved the investment plan on August 29, would hold an extraordinary shareholders’ meeting on November 17 to propose the plan for endorsement.
The first phase of the three-phase expansion is targeted to begin operations by 2018.
The US-based parent company, The Goodyear Tire & Rubber Co,owns 66.8% of Goodyear Thailand, which employs more than 1,000 people in the country. It expects to increase the workforce by almost 100 upon the completion of the project, O’Connor added.
The Thai unit provides original equipment and replacement tyres for passenger cars, commercial trucks and retread tyres for domestic sales and exports.