Guardian Industries has earmarked US$95 million for 2015-16 to overhaul and upgrade its production in Thailand.
The company produces high-performance glass used in the automotive industry in Rayong province, a major manufacturing site for car assemblers.
Sanjiv Gupta, Guardian’s general manager for Asia-Pacific, said the investment would upgrade and open more production lines to serve new products. The company plans to spend $45 million next year and $50 million in 2016. Last year, the company invested $45 million in production in Thailand.
The company has set aside the huge investment in Thailand because the country is a major hub of the automotive industry. “As we can see, the leading car makers all have factories here as well as the auto parts makers and supply chain,” said Mr Gupta.
As part of the supply chain in the auto industry, he added, the company has to beef up its product line to better serve demand from car manufacturers. “The new line will be high-quality products that are designed to serve the demand of the auto industry,” said Mr Gupta.
Mr Gupta said Guardian’s Thai operation provided its export base to more than 40 countries worldwide. Apart from introducing new products, the company will also improve the technology used in its production. “We want to lift production standards at our Thai site. The aim is to upgrade to become a high-technology production base,” he said.
According to the company, Guardian entered Thailand in 1995 and operates two factories in Saraburi and Rayong with a combined value of $350 million.
Mr Gupta said the company was not concerned by Thailand’s prolonged political issues. On the contrary, the kingdom’s economy is quite resilient to uncertainties, he said.
Robert Joyce, vice-president for global governmental affairs, said Guardian wanted to ensure the most cutting-edge technology is invested in Thailand in order to meet customers’ requirements.
Apart from developing an export base in Thailand, the company has also looked for opportunities to tap into demand in the domestic market for parts replacement because it could see growing demand, Mr Gupta said.
Guardian was the first float glass manufacturer in Thailand to earn ISO 9001:2000 certification.