The company will spend the next 12-15 months studying the feasibility starting a parts-manufacturing venture here with either local or international joint venture partners.

A Magna team of executives led by Steve Rodgers, vice president for Asia-Pacific marketing and business development, yesterday unveiled the company's plans. "This is a vibrant automotive market that we believe will experience continued local growth and regional expansion," said Rodgers, who added that Thailand had become a global centre for quality pickup design and production.

The automotive market, combining a growing local automotive market and regional export potential, presents an exciting opportunity for Magna, he said. The company has spent more than a year studying the Thai market before deciding to set up shop.

One of Thailand's advantages, he said, was the government's  aim to boost local production to 2 million units from a little more than 1 million last year. There has been a constant flow of investment in production, technology and development of a skilled workforce by most of the world's leading manufacturers.

Magna aims to set the standard for auto parts in Thailand. "We want to help meet the growing demand for high-quality auto parts demanded by OEMs [original equipment manufacturers]," he said.

Jerry Suyavong, executive director of Magna Thailand. said the establishment of the office demonstrated the company's commitment to the region.

Magna designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers.

Canada-based Magna sells US$22.8 billion (Bt887 billion) worth of auto parts a year.