Chinese battery cell maker Sunwoda Automotive Energy Technology (Thailand) is building two new factories in Thailand, aiming to benefit from the growing electric vehicle (EV) industry here to use the country as its new export base, says the Board of Investment (BoI).
The company plans to spend 50 billion baht to develop two plants in Chon Buri, expecting to start operations later this year.
"Sunwoda expects to hire more than 4,000 people, including 900 engineers and researchers," said Narit Therdsteerasukdi, secretary-general of the BoI.
His announcement followed an approval granted by the Commission on the National Competitiveness Enhancement for Targeted Industries Policies, led by the finance minister, which met yesterday and resolved to have the BoI support new investment through investment incentives.
"The factories will be the company's largest battery cell production facilities outside China," said Mr Narit.
Battery cells are considered to be in upstream battery manufacturing, focused on the production of electrochemical units that can store and release energy.
The company said it plans to spend 2 billion baht a year buying locally produced materials to serve its factories.
Established last year, Sunwoda Automotive Energy Technology (Thailand), a subsidiary of Shenzhen-based Sunwoda Electronics, will make battery cells for EVs and produce energy storage systems. The company's products will be sold domestically and exported.
The company plans to use high technology at its plants, including automation and virtual factory software.
Virtual factory software allows Sunwoda to model and simulate processes, layouts and operations of its physical factories in order to better plan its production.
According to the BoI, the company intends to transfer technological know-how to its employees. It will also select 600 students from universities and vocational schools to be trained and work as interns at its factories.
The company also wants to cooperate with academic institutions and research agencies in Thailand on nine R&D projects, added Mr Narit.
"Sunwoda's investment marks our successful step to draw an upstream battery making project of a global company into Thailand for the first time," he said.
Over the past five years, the BoI approved 48 battery investment projects, mostly battery modules and packs, with a total value of 27.2 billion baht.