RAYONG : Japanese tyre maker Yokohama Rubber Co plans to double production capacity at its plant in Rayong in a bid to make Thailand its export base for Asean.
The company will double production of truck and bus tyres to 2,080 tyres a day next year.
The plant makes about 12,200 passenger car tyres a year, with plans for 26,000 tyres annually in five or six years, said Punnaphop Boriboon, senior manager for distribution at Yokohama Tire Manufacturing (Thailand).
Founded in 2004, the 5.9-billion-baht plant at Amata City Industrial Estate can make 370 types of tyres and employs 1,960 workers.
Apart from Thailand, Yokohama has plants in the Philippines (making 50,000 passenger car tyres a day) and Vietnam (for motorcycle tyres).
According to Mr Punnaphop, the Rayong plant uses 10,000 tonnes of natural rubber to make 5 million tyres a year, with an additional 5,000 tonnes now needed after expansion of truck and bus tyre production.
Exports of passenger car and light truck tyres to North America, which accounted for 60% of sales in 2012, have dipped this year because of the sluggish economy there.
The company estimates the share of that market falling to 7% this year as sales in Thailand rise to 42%, up from just 10% last year. Shipments to Europe are projected at 9%, with 26% bound for other Asean markets and Australia.
Yokohama says it has a 20% share of Thailand's original equipment market and 5% of the replacement market. Major customers are Toyota, Nissan and Honda.
The company recently finished the third phase of its 1-billion-baht testing centre in Rayong. Built in 2009 and now spanning 4.1 kilometres of track, the testing centre is Yokohama's second and can handle more than 7,000 tyres a year.
The company also plans to set up a research and development facility in Thailand in 2015, focusing on mechanics, chemistry and polymers.
Yokohama is thought to be behind Bridgestone, Michelin, Goodyear and Dunlop for tyre output in Thailand.
The Industrial Economics Office reports Thailand makes 50 million tyres a year, with exports valued at US$3.45 billion in 2012. Thailand has less than a 4% share of global exports.