ford opens new factory in Thailand

Ford gets Thai bank loans to relocate to kingdom
By Achara Deboonme,
Vijo Vargese
The Nation

Ford Motor has secured a loan from Thai banks to relocate its passenger car plant from the Philippines to Thailand, a banking source said yesterday.

The US company's local arm, Ford Motor Thailand, is expected to unveil the move at a press conference today on its expansion plan for Thailand.

The source said Bangkok Bank would lead the loan syndicate, which will include Tisco Bank, but declined to specify the loan amount.

"The deal has been agreed on for some time, but the signing has been delayed due to the political turbulence," the source said.

Earlier this year, Bangkok Bank, Siam Commercial Bank and Tisco Bank joined in the syndication of a Bt13.5-billion credit facility for General Motors (Thailand) to finance two vehicle programmes and the construction of a diesel-engine plant in Rayong.

The new factory, which will require an investment of US$450 million or about Bt15 billion, is believed to manufacture the Focus.

Joseph Hinrichs, Ford group vice president and president for the Asia-Pacific and Africa, yesterday met Prime Minister Abhisit Vejjajiva, as the carmaker has decided to grow its footprint in the Kingdom.

While thanking the government support for the company's operations in Thailand, Hinrichs said the automobile market in Asia shows bright prospects with rising demand for small but efficient cars.

He has witnessed encouraging progress in Thailand, besides China, India, Australia and South Africa. Ford is prepared to launch two new models in Thailand - the Fiesta and Ford Ranger.

The new plant, together with the Rayong plant run by its joint venture Auto Alliance (Thailand), will allow Ford to use a more advanced facility, and will be in line with Ford's plans of turning Thailand into a central base for the company in the region.

"The production of the Mazda3 will continue in the Philippines. Since the new factory belongs to Ford, we won't be shifting the Mazda3 production to Thailand. We'll continue to import it from the Philippines," said a source at Mazda Sales Thailand.