German vibration control technology manufacturer TrelleborgVibracoustic opens a plant in Rayong, Thailand.
The site, 143 miles (230 km) southeast of Bangkok, produces engine mounts, chassis mounts and body mounts for local customers such as Ford, General Motors, Nissan and Volvo.
“With our new production site in Rayong, TrelleborgVibracoustic is strengthening its global footprint in one of the world’s most important automobile growth markets,” Jim Law, a member of the company’s management board says at the plant’s opening ceremony.
TrelleborgVibracoustic regional president for China and Asia/Pacific Matthias Sckuh says many OEMs welcome the company’s presence in Thailand.
“By setting up operations in Thailand, we strive to expand our customer base with focus on Japanese OEMs,” he says.
Automakers in Thailand want to purchase more locally manufactured parts due largely to import tariffs, Sckuh says, adding rapid availability of components also is an important factor.
“With a local supplier network, our customers can reduce their storage capacity and cut costs in terms of logistics,” he says.
The new plant is located close to Ford, GM, Suzuki and other OEMs.
Starting with 30 employees, it plans by 2018 a workforce of about 200 producing chassis mounts, engine mounts and dampers for local customers and export.
The site is TrelleborgVibracoustic’s 39th in the world and represents the first operation of a Western supplier for automotive anti-vibration components in Thailand. The 3-year-old joint venture between Freudenberg and Trelleborg in 2012 generated sales of about €1.8 billion ($1.93 billion) in 2014. It has 10,000 employees in 19 countries.