German tyremaker Continental is planning to build a new tyre plant in Asia as all of its existing plants in China, India and Malaysia have reached full production capacity.
According to Sirivan Koo-amphorn, general manager of Continental Tires Thailand, the Hanover-based parent firm is considering Thailand or China for a tyre-making facility, with the final decision to be taken within this year.Sirivan said that the parent firm is looking for a new site to expand its tyre business in the Asia-Pacific region, adding that Thailand is an important market for the group.
The company currently runs a plant at Rayong’s Amata City Industrial Estate to produce fuel injectors and high-pressure pumps. It began production in early 2010 after being granted investment privileges for total capital expenditure of 5 billion baht.
Founded in 2009, Continental’s tyre unit is based in Bangkok, which is mainly involved in tyre import and distribution activities. Most tyre products available in Thailand are imported from its plant in Malaysia.
Sirivan said that tyre sales in Thailand have experienced robust growth over the last four years, with Continental holding a 3% share of Thailand’s overall tyre market. Thailand uses 8 million tyres a year for vehicles and 3 million for heavy-duty trucks. She said that the company is expecting a 20% increase in sales this year from the nearly 1 billion baht posted last year.
From 2016 on, Continental plans to increase its product range, covering pickup trucks and vans.
Thailand was also chosen as the first country in Asia-Pacific for the launch of ContiPressureCheck technology, which uses sensors in each tyre to generate status reports and reduce road accidents.
According to Sirivan, the company aims to equip this system for roughly 4,000 tyres by 2016, focusing on logistics firms and bus operators. It also plans to expand its dealership model, Conti Tires Shop, in Thailand.