The Office of the Board of Investment (“BOI”) has approved a substantial investment proposal from Continental Tyres (Thailand) Co., Ltd., (“the Company”) a subsidiary of the global Continental AG group. The Company will invest 13.4 billion baht to expand its tire production facility in Rayong Province. This expansion aims to increase the annual output by an additional 3 million high-performance radial tires, primarily for export, reinforcing Thailand’s standing as the world’s second-largest tire production hub, following China.
The project will involve the construction of a new factory building, the extension of the existing plant at the WHA Industrial Estate Eastern Seaboard 4, and the installation of new machinery imported from Germany. This expansion is set to boost the plant’s total production capacity to 7.8 million tyres per year and create 600 new jobs, bringing the total workforce to 1,500 employees.
The facility uses locally sourced natural rubber and other raw materials to manufacture tires for various vehicles, including motorcycles, light trucks, passenger cars, and electric vehicles. This commitment to local resources aligns with Thailand’s strategic position as a major production base for quality automotive products. The expansion reflects Thailand’s potential as a top-tier production hub, emphasizing safety and environmental standards. This move also strengthens Thailand’s status as an automotive industry hub and solidifies investor confidence in the country.
The Company was established in 2009 and has been fully operational under the Continental Group, the world’s fourth-largest tire manufacturer. Tire production in Rayong commenced five years ago, and the expansion is part of a broader trend. Since 2020, there have been 41 new investment applications in Thailand’s tire sector, totaling over 112 billion baht. Thailand’s strategic location, favorable government incentives, and robust supply chain make it an attractive destination for automotive and tire manufacturing, supporting traditional internal combustion engine (ICE) and electric vehicle (EV) industries.