Goodyear (Thailand) Plc plans to spend B5.63bn over 10 years expanding its factory in Pathum Thani province to produce radial aviation tyres and meet growing demand.
The board, which approved the investment plan on Monday, would hold an extraordinary shareholders' meeting on Nov 17 to propose the plan for endorsement.
"The world's aviation fleet continues to grow and is projected to double in size over the next 20 years," said its managing director Finbarr O'Connor. "The fastest growth is seen in the Asia-Pacific region."
Ernst & Young Corporate Services Ltd, the financial adviser, reviewed the investment project for the board and concluded it was in the best interest of Goodyear (Thailand) to move forward, he said.
The first of the three expansion phases should be operational by 2018 to meet market demand as commercial airlines are rapidly converting their fleets from bias to radial tyres.
The company, 66.8%-owned by US-based parent company The Goodyear Tire & Rubber Co, employs more than 1,000 in Thailand. It expected to increase the workforce by almost 100 upon the completion of the project, Mr O'Connor said.
GYT shares jumped 2.39% to 428 baht in trade worth 42,000 baht in the morning session on the Setock Exchange of Thailand on Tuesday.