Auto manufacturer Nissan Motors, is aiming to increase its production capacity in Thailand. The company is planning to build a new factory near Bangkok, which is estimated to cost roughly $376 million. A report released by Nikkei Business Daily said that the new facility will be built in the Samut Prakan province near the current Nissan plant.
The Nissan plant had emerged unscathed by the record flooding last year, which had damaged other Japanese firms. The existing plant had stopped production on a temporary basis due to the disaster and the sudden shortage of parts.
The auto company’s new facility is expected to become operational in 2014, and will produce about 100,000 vehicles on an annual basis. The company has plans to increase production to 200,000 units, which is roughly equivalent to Nissan’s current annual production in Thailand.
When asked about the development, a spokesperson from the company denied to comment and said that the firm would soon make an announcement about its business in Thailand. The spokesperson did however say that the company made around 190,000 vehicles in Thailand in the last financial year. Nissan is planning to double its share of the Thai vehicle market to 15% by the 2016 financial year. The recent move has come as other auto makers have cut their production in China, due to the disputed islands issue that China and Japan are yet to resolve.