Today, October 2nd, Nissan announced it will invest $358 million to build a second facility in Thailand.
Nissan’s second assembly plant is to be opened in 2014 and will initially produce 75,000 vehicles annually. The automaker will later increase capacity to 150,000 vehicles, 50% of the vehicles manufactured being foe the Thai market and the other half for exports.
“Adding 150,000 units of production capacity will not only enable us to raise our competitiveness in the domestic market but will ensure Thailand’s position as a key strategic global export hub for Nissan,” executive vice-president Hiroto Saikawa said in a statement.
A Japanese newspaper was reporting that Nissan plans to build a second plan to diversify production after the violent anti-Japan protests in China. However, Hiroto Saikawa said that the reason for building this second plant is because the continuous growth in Thailand and the ASEAN region.
“We have no intention of shifting from China … China is a very important market for us,” he added.
The second plant will be situated close to the first one in Samut Prakarn province. Both plants will manufacture passenger cars and pickup trucks. Nissan plans to increase its share of the Thai market from the current 10% to 15% by 2016.