With the pressures on Japanese business in Japan from the strong yen and the recent earthquake/tsunami, it is to be expected that many will look at relocation, and Thailand is poised to benefit from the Japanese industrial fallout.
Jatco, a Japanese maker of automobile transmissions, will build a 7.6 billion baht plant in Chonburi that is scheduled to open in 2013. Projected annual production is 500,000 continuously variable transmissions (CVTs), making it the first CVT manufacturer in Thailand. Automakers supplied by Jatco includes Nissan (Juke and March) and Suzuki (Swift).
Takashi Hata, president and chief executive of the parent company said, “It will become an important base for Jatco to further expand its business and become a truly global company. Jatco is also determined to contribute to the environment by manufacturing environmentally friendly CVTs in ASEAN.”
Thailand is Jatco’s third international location, after Mexico and China, and it is expected that Jatco (Thailand) will employ 1,300 staff by 2014, providing another boost for the Eastern Seaboard.