JTEKT Corporation, the Osaka-based auto parts maker, plans to set up its regional headquarters in Thailand, hoping to turn its Thai base into an Asean hub by 2020.
The Japanese firm operates three plants making car parts such as bearings and steering in Chachoengsao. Most of the products are sold locally to support the sizeable automotive industry.
Konishi Yoshikazu, president of JTEKT (Thailand), said the company's aim is to use the Thai company as its Asean hub by 2020.
In the region, JTEKT has six companies in Thailand and five in Indonesia, and two each in Malaysia, Singapore and the Philippines.
"We want to centralise JTEKT's business in Asean to its Thai operation," he said.
Yesterday, JTEKT announced its plan to increase its steering products market share in Asean from 68% to 75% between 2016 and 2020.
The market share for bearing products is expected to rise from 29% to 40% over the next five years.
JTEKT aims to boost its Asean sales revenue from ¥120 billion in the last fiscal year ending March to ¥140 billion (47.8 billion baht) by 2020, said Mr Yoshikazu.
Revenue from Thailand is expected to rise from ¥35 billion in the last fiscal year to ¥42 billion in 2020.
But for fiscal 2016, which started in April, JTEKT forecasts revenue will decline slightly by 1.7%, due to the bearish automotive industry.
He said the company expects to receive investment privileges from the Board of Investment for its Thai operations in the first quarter of next year.
The parent firm has another plant run by JTEKT Automotive (Thailand) in the Eastern Seaboard Industrial Estate.
At present, JTEKT's Thai operations employ 4,800 staff.
"We now have 12 local plants which have a capacity of 4 million units per year," said Mr Yoshikazu. "JTEKT's footprint in Thailand for the past 50 years indicates its strength to support the Asean hub in the long run."
Toyota Motor Corporation is a major shareholder of JTEKT Corporation. In fiscal 2014, the company posted net sales worldwide of ¥1.36 trillion, up by 7.5%, with net profit of ¥42 billion, up by 82.6%.