Minebea Group, a ball bearing and electronic parts maker, plans to expand its production to serve increasing demand in the aviation industry.
President and chief executive Yoshihisa Kainuma said the company's Lop Buri factory was its production base for shipping to global aviation markets such as Britain, Japan and the US.
The factory produces ultra-precision parts and components for aircraft and aerospace companies such as spherical bearing machined parts and stepping motors.
The company declined to give further details on the expansion plans including the investment budget.
"We've been established in Thailand for more than three decades, with our production base serving the Southeast Asian market," Mr Kainuma said.
The company is looking forward to higher demand in the region once the Asean Economic Community kicks off late next year.
"It will be an opportunity to expand our business, as Thailand is the centre of the region, and we're ready to take up that opportunity from our huge investment in the production base here," Mr Kainuma said.
He said production in Thailand contributed hundreds of billions of baht to the group's revenue annually.
The company expects to see higher revenue in line with increasing its production capacity.
Minebea has begun investing in expansion despite the slow global economy on expectations it will pick up soon, as the aviation industry relies largely on global purchasing power.
"Our major client is Boeing, the world's largest aerospace company, and it will get more orders if the aviation industry recovers. We've been the electronic parts supplier for them for many years," said Mr Kainuma.
"We will talk to Thai Airways too, because we also supply electronic parts for them."
The company operates five manufacturing sites in five provinces in Thailand, completing more than 120 projects inside those complexes with investment value of 70-80 billion baht.
Industry Minister Chakramon Phasukvanich said Minibea planned to invest a further 200 billion baht in an electronic parts factory in Lop Buri to expand monthly capacity to 15 million parts pieces.
The move will create 1,700 jobs, he said.
Mr Chakramon said this was a strategic investment by Minebea, as the labour shortage was prompting the company to make its Thai base a centre for high-technology production rather than labour-intensive output.
Minebea uses its Thai factory for high-technology production and its Cambodian factory for producing low-grade electronic parts since these are labour-intensive, he said.