Global tyre manufacturer Continental Tyres is investing 13 billion baht to expand its Rayong factory, reinforcing Thailand’s role as a key hub in tyre production.
Narit Therdsteerasukdi, secretary-general of the Board of Investment, announced on Wednesday that the expansion of the company’s radial tyre production at the WHA Eastern Seaboard 4 Industrial Estate has been approved.
This development will boost the factory’s output from 4.8 million to 7.8 million tyres annually, generating over 600 new jobs.
Having operated in Thailand for 15 years, Continental Tyres has made significant investments in sustainable production practices.
The Rayong plant, established five years ago, features energy-efficient technology, automated systems, and solar panels to foster greener manufacturing processes.
The expansion is part of Continental Tyres’ strategy to enhance the growth of the electric vehicle (EV) industry in Thailand and across the Asia-Pacific.
The company notes its high-performance tyres are tailored to meet the demands of electric vehicles, improving both performance and longevity.
Narit highlighted that Continental’s increased investment aims to bolster the expansion of the EV sector in Thailand and the wider Asia-Pacific region.
The Rayong facility will be a crucial manufacturing site, supplying tyres to vehicle manufacturers and consumers, covering passenger cars, light trucks, motorcycles, and premium and high-performance tyres for EVs.
EV tyres cost 2-3 times more than traditional tyres due to the specialized gearbox and acceleration system required for electric vehicles.
Narit emphasized, “This massive investment expansion demonstrates confidence in Thailand’s ability to become a world-class tyre production base, addressing both safety and environmental concerns.”
“This expansion of the tyre manufacturing base will help to increase the value of natural rubber raw materials while also improving the quality of life for Thai farmers. It will help strengthen Thailand’s automotive supply chain, making it more stable and robust,” he said.
He also mentioned that the tyre industry plays a vital role in the automotive supply chain, enhancing Thailand’s global supply chain position.
Thailand stands as the world’s second-largest tyre producer and exporter. From 2020 to 2024, there were 41 investment promotion applications for tyre manufacturing, totaling more than 112 billion baht.
Numerous leading tyre manufacturers from around the globe have established production facilities in Thailand. These include Michelin from France, Bridgestone and Yokohama Tire from Japan, Goodyear from the USA, and Continental from Germany.
Additionally, Sumitomo Rubber from Japan, along with Chinese companies such as Zhongche Rubber, Prince Chengshan Tire, Linglong, and Century Tire, and Maxis from Taiwan, also operate manufacturing bases in the country.
The Continental Group, based in Germany, ranks as the fourth-largest tyre manufacturer globally. In 2023, its tyre division generated more than 14 billion euros (about 500 billion baht).
The company maintains 20 tyre factories in 16 countries and has been active in Thailand for nearly two decades.
