BANGKOK -- Japanese autoparts giant Jtekt has begun operations at a new factory in central Thailand for power-steering components.
Located in Chachoengsao, near assembly plants run by Toyota Motor and Isuzu Motors, the new plant has the capacity to produce cross-joints and bearings for 4 million power-steering couplings a month. It is equipped to conduct all stages of production, from processing materials to final assembly.
Up until now, Jtekt has manufactured all its components for power-steering couplings at a factory in Japan and exported them to overseas bases for assembly.
Jtekt made the 5.7 billion yen ($47 million) investment in order to have a local presence and meet the needs of automakers throughout Southeast Asia seeking to ramp up local procurement.
The company expects the new Thai facility to reach full operation by the end of 2016 and account for 35% of its global production of these parts.