Scania AB, the Swedish truck and bus maker, plans to increase annual production at its assembly plant in Chachoengsao province to 1,100 vehicles in 2018 from 500 now as part of a five-year business plan.
James Armstrong, the managing director of Scania Southeast Asia, said the company foresees healthy demand growth for buses, trucks and engines for industrial, marine and power generation in all 10 Asean countries, driven by the region's economic integration and planned state spending on infrastructure projects.
Regional integration and transport projects will help sales, says Mr Armstrong. SOMCHAI POOMLARD
Scania plans to sell 1,732 units in Asean this year, up by 47.9% from last year.
For Thailand alone, Scania has set a target of 530 this year, up by 63.6%.
Scania began with trucks in Thailand in 1986 and added buses in 1987 via an importer called Forefront (Thailand).
Scania Siam Co was then founded in 2000 and as a wholly owned subsidiary of Scania AB.
The Chachoengsao factory uses separate lines for trucks and buses to support a large range of Scania trucks, bus chassis, spare parts and services.
Scania in May said it planned to open 10 more service centres nationwide over the next three years to capitalise on a busy logistics system triggered by regional integration.
Scania now operates six service centres in Thailand, in Samut Prakan, Songkhla, Chon Buri, Saraburi, Surat Thani and Tak provinces.
The company will set up centres in Khon Kaen, Chiang Mai, Samut Sakhon and Rayong this year, four more next year and two in 2015.
Possible new locations include Nakhon Sawan, Nakhon Ratchasima, Nakhon Pathom, Mukdahan and Pathum Thani provinces.
Elsewhere in Asean, the Swedish firm operates an additional factory in Malaysia, with annual production capacity of 700 vehicles.
Mr Armstrong said Scania also sees growth opportunities in Myanmar.
Last year, the company appointed a distributor, Octagon, to build up sales and service in Nay Pyi Taw, to be followed by Yangon and Mandalay next month.
Scania has sales offices in Malaysia, Singapore, Thailand, Indonesia and Myanmar.
"As soon as the Myanmar government improves and upgrades its local infrastructure, Scania is ready to construct factory and warehouse facilities in Mandalay next year," said Mr Armstrong.
About the author
- Writer: Piyachart Maikaew
Position: Business Reporter