Continental Tyres investing THB13 billion in its Rayong plant
Global tyre manufacturer Continental Tyres is investing 13 billion baht in its Rayong factory, solidifying Thailand's position as a major hub for tyre production.
Narit Therdsteerasukdi, secretary-general of the Board of Investment, said on Wednesday that the board had approved the company's application to expand its radial tyre production capacity at the WHA Eastern Seaboard 4 Industrial Estate.
The expansion will increase annual production from 4.8 million tyres to 7.8 million, creating over 600 new jobs.
Continental Tyres has been operating in Thailand for 15 years and has invested heavily in sustainable production practices. The Rayong factory, which was opened five years ago, is equipped with energy-efficient machinery, automated systems, and solar panels, contributing to a more environmentally friendly manufacturing process.
This expansion aligns with Continental Tyres' strategy to support the growth of the electric vehicle (EV) industry in Thailand and the Asia-Pacific region. The company said its high-performance tyres are specifically designed to meet the unique requirements of electric vehicles, offering enhanced performance and durability.
Narit said that Continental had decided to increase its investment to support the growth of the EV industry in Thailand and the Asia-Pacific region.
The Rayong factory would serve as an important production base for selling tyres to automakers and general users, including passenger cars, light trucks, motorcycles, premium tyres, and high-performance tyres for EVs, he said.
EV tyres are 2-3 times more expensive than conventional tyres because they require a different gearbox and acceleration system than internal combustion vehicles.
"This massive investment expansion demonstrates confidence in Thailand's ability to become a world-class tyre production base, both in terms of safety and environmental concerns. This expansion of the tyre manufacturing base will help to increase the value of natural rubber raw materials while also improving the quality of life for Thai farmers. It will help strengthen Thailand's automotive supply chain, making it more stable and robust," he said.
Narit noted that the tyre industry is an important component of the automotive supply chain, so the move will strengthen the country's position in the global supply chain.
Thailand is currently the world's second-largest tyre producer and exporter. Over the last five years (2020-2024), 41 applications for investment promotion in tyre production were submitted, totalling more than 112 billion baht.
Many world-class tyre manufacturers have set up production bases in Thailand. They include: Michelin (France), Bridgestone (Japan), Goodyear (USA), Continental (Germany), Sumitomo Rubber (Japan), Yokohama Tire (Japan), Zhongche Rubber (China), Prince Chengshan Tire (China), Linglong (China), Century Tire (China), and Maxis (Taiwan).
Continental Group of Germany is the world's fourth-largest tyre manufacturer. In 2023, the company's tyre business generated more than 14 billion euros (500 billion baht). The company operates 20 tyre factories in 16 countries around the world, and has been in business in Thailand for nearly two decades.
