The tyres are priced between Bt3,000 and Bt7,000 and the company expects to sell 40,000 this year, accounting for 20 per cent of Yokohama's total market in Thailand.

Yokohama had a two-phase plan for its production in Thailand. The first was the production of bus and truck radial tyres at a plant with a capacity of 350,000 units per year. Phase two, which is a factory making tyres for SUVs and light trucks, has been completed and will produce 1.4 million units per year.

Both plants are in the Amata Nakorn Industrial Estate in Chon Buri province. The new plant will officially open in November, although its tyres will be available in the Thai market only within the second quarter of next year.

Investment budgets for phases one and two were US$48 million (Bt1.8 billion) and $100 million respectively. The new plant will be the biggest production facility for Yokohama in the world. It also has a factory in the Philippines producing more than one million units per year.

"We believe Yokohama customers worldwide have started accepting the products we produce in Thailand and the Philippines. Our quality in production here is on a par with production in Japan. We are now ready to export from Thailand to all parts of the world," said Etuji Hanatate, Yokohama's deputy general manager for overseas sales.

Of the total production in Thailand, 20 per cent will be for the local market. The remainder will be exported to the US, Europe and other parts of Southeast Asia.

Hanatate said there would be further investment in Thailand in the coming years, but a research-and-development facility was unlikely because production was the main focus.

As more products are introduced, prices are likely to drop to compete with other premium brands.

"We plan to place Yokohama in the premium market, possibly even above Bridgestone. Once we enter the light-truck market, we expect to see tremendous growth. We currently have 120 dealers but hope to double that number by next year," said Apichai Tangwongsiri, managing director of T Siam Commercial.

Company officials also hinted there were plans to enter the car market but no official statement has been made.

Yokohama is having talks with major SUV and light-truck producers to capture some of the original equipment manufacturers market.

Vijo Varghese

The Nation