Delphi to start Thai unit in September

Alok Agarwal
07 April 2001

Delphi Thailand, the wholly owned subsidiary of US-based Delphi Automotive Systems, world leaders in transportation and mobile electronics components and systems technology, is to get its first manufacturing unit in Thailand operational by September 2001.

The Bht 510 million or $ 12.1 million facility, spread over 3,000 square meters and jointly promoted by the Board of Investment, Thailand, will be the first one to manufacture and supply brake calipers and fuel handling systems in the ASEAN region. Located in the eastern Seaboard industrial estate, Rayong, the facility will supply its output to Delphi’s existing units as well as to other potential vehicle manufacturers in Thailand. Delphi’s brake caliper and fuel handling systems incorporate latest technology, widely accepted by global customers and have been designed to meet various environmental requirements such as rough fuel in developing countries.

Mr. Steve Bowers, director dynamics and propulsion division, Asia Pacific region, said, "Delphi is investing in Thailand to meet its vision of becoming the most preferred supplier among vehicle manufacturers in this country as well as in the region. In doing so we will also be supporting Thailand’s aim to become a regional auto hub. Establishing this facility in Thailand to support Delphi’s largest business sector, dynamics and propulsion, demonstrates our long term commitment and confidence in Thailand." He added that Delphi was confident of Thai government’s commitment to a free and open economy.

Mr. Ravi Khanna, president Delphi Thailand, clarified that auto parts produced at the Rayong unit will be initially supplied to local OEM manufacturers before aggressively pursuing export opportunities. He said, "A major factor to set up a manufacturing facility here is that Thailand has become a base for leading Japanese, European and American vehicle manufacturers, which makes Delphi’s long term business prospects look very good. We will continue to identify and meet our customers’ requirements."

Mr Chakramon Phasukavanich, deputy secretary general Board of Investment Thailand, in a joint statement said, "Delphi is the world leader in automotive components and systems and their decision to invest in this facility here indicates its confidence in the long-term growth of the auto industry in Thailand. Delphi’s presence will truly reinforce Thailand’s position as the Detroit of the East."

In addition to Thailand, where it set up its first representative office in 1997 to build a network of support for the country’s automobile industry, Delphi has set up facilities, wholly owned or as joint ventures, in Malaysia, Indonesia and Singapore. Sales from all its ventures in Asia Pacific in calendar 2000 were placed over US $2.18 billion.