Fiat, aero firm check Thai plants

"The company's executives will meet me next week. They would like to know about the market, tax privileges and other details. However, they have yet to make any decision," Suwit said. Fiat is one of the leading manufacturers of E85-compatible cars in Brazil. Therefore, it has strong potential to compete with other auto-makers in alternative-fuel vehicles and small-sized passenger cars.

"So far the company has not established any production facility here, so it will require at least $1 billion to set up the overall production system," added Suwit.

Meanwhile, Imai-Aero Equipment Manufacturing, a Japan-based aerospace and aero-parts manufacturer, is interested in setting up an aircraft plant in Thailand.

It plans to produce 5,000 small-sized aircraft, each containing 80 seats, within three years. Each aircraft requires an investment of Bt1 billion.

Company president Tetsuo Imai said Thailand was the regional aviation hub and many of its partners and aircraft-makers had plants here. "Demand for small-sized aircraft has increased dramatically in the global market due to the soaring oil price and the boom in low-cost airlines," he said.

The company has already set up an aero-parts plant in Amata City in Rayong province with an investment of Bt60 million.

Surayud Petchtrakul, adviser to Suwit, said: "The company is making a decision between Thailand and Vietnam, where the government has offered to order 100 units. However, it is more in favour of Thailand, which is one of the world's leading aircraft production bases."

He said the company executives were not worried about political turmoil as the investment was long-term.