Tan Chong International Ltd, the Hong Kong-listed motor distribution, property and trading group, is poised to invest US$150 million by 2019 to expand its production in Thailand.
Executive director Glenn Tan said the new investment will cover land acquisition, infrastructure development and production capacity expansion. The company already bought 200,000 square metres of land the past two months.
By 2019 Tan Chong aims to raise production of its existing facility at Lat Krabang Industrial Estate to 35,000 units including passenger cars. Through TC Manufacturing and Assembly (Thailand), the company produces 6,000 trucks a year under the Mitsubishi Fuso brand.
Tan Chong took over Mitsubishi Fuso Truck and Bus Corporation and Mitsubishi Fuso Truck Thailand in late 2009. The combined investment including takeover costs was $30 million.
Tan Chong's motor vehicle distribution segment includes all models of Nissan and Subaru passenger cars and Nissan light commercial vehicles. Its heavy commercial vehicle and industrial equipment distribution markets include Nissan forklift trucks in Singapore and Thailand and Mitsubishi Fuso trucks in Thailand.
The group's other operations mainly include investment holding, hire-purchase financing, provision of workshop services and the manufacturing of vehicles seats.
Mr Tan noted the new investment will be dependent on Thailand's political situation, and will be focused largely on passenger cars. Tan Chong expects to sell 1,650 Fuso trucks in Thailand this year, down from 1,669 last year.
Fuso trucks held a 4% share in 2013 in a market that sold 43,823 units.
In a related development, Tan Chong kicked off its assembly line operations yesterday for the Chinese truck Foton at TC Manufacturing and Assembly.
Foton Truck (Thailand) Co, a subsidiary of Tan Chong, expects to sell 100 trucks in the first year of local assembly.
According to Mr Tan, the company also plans to start an assembly line for German bus brand Man in the fourth quarter of 2014.