Construction of the facility is scheduled to begin soon and initial production is planned for July 2007.

Akebono is targeting sales of ¥5 million in 2010, a company's statement said yesterday.

The move comes after the Japanese company established Akebono Brake (Thailand) Co Ltd on August 11, adding to Akebono Group's presence in Southeast Asia.

In Indonesia, its PT Tri Dharma Wisesa (TDW) manufactures disc brakes, drum brakes and friction material for drum brakes, and Akebono Corporation Asia Pte Ltd is its Singaporean sales base. Akebono also ships its products from Japan to the region.

In addition to expanding Akebono's business in the Thai market, Akebono Brake Thailand Co Ltd will function as a base to strengthen its regional business integration in Southeast Asia. The company will also drive business development in Asia.

Akebono Brake Industry Co Ltd makes brake products for automobiles, motorbikes, rolling stock, and industrial machinery, as well as sensor products for automobiles.

Akebono Group, which recorded net sales of ¥142.3 billion in the fiscal year ended March 31 on a consolidated basis, employs more 6,000 people worldwide.