German car maker BMW AG and its local partner Powertech Engine Assembly plan to spend 600 million baht to make engines in Thailand.
"This will be the first engine manufacturing facility for BMW in Asean," said Klaus Draeger, a member of BMW's board of management.
Engine production handled by BMW's manufacturing plant at Rayong's Amata City Industrial Estate is scheduled to start operation in December next year for four-cylinder diesel units, and by the end of 2016 for four-cylinder petrol engines.
The German parent company will transfer its technology and knowledge here as well as train local engineering specialists for engine production and cold testing.
The company said in July it was spending
9 million euros (370 million baht) to expand its Thai plant and upgrade its logistics system to support the domestic market.
The new investment will go mainly toward expanding production of passenger cars and motorcycles in Rayong. The company plans to raise production of passenger cars to 10,000 vehicles in 2015 from 8,880 this year, churning out 1,000 motorcycles next year.
BMW Manufacturing (Thailand) began operations in 2000 at a cost of 2.6 billion baht. The Rayong factory is the only site in BMW's global network with full operations for its three brands: BMW, Mini and BMW Motorrad.
The local plant began assembly of the Mini Countryman last August, seeking to make 200-250 units the first year.