Mercedes-Benz Cars to invest in battery production facility in Thailand, under a partnership with TAAP
Daimler’s Mercedes-Benz Cars will spend 100 million euros (US$123 million) by 2020 on a lithium-ion battery factory in Thailand to better access the fast-growing Asia region.
The German company is partnering with Automotive Assembly Plant (TAAP), which operates an existing car plant in Bangkok. This will be expanded to include EV and hybrid production, as well as battery assembly. Local production of batteries in Thailand is planned to start by 2019.
In 2017, TAAP produced over 12,000 cars for Mercedes-Benz at the facility. It currently employs over 1.000 people, and the additional investment in expansion is expected to create over 300 new jobs at the site, almost 100 of which will be for battery production alone.
“With our highly standardised and scalable battery production concept we are able to start operations in any region at short notice and at the right size,” said Mercedes production and supply chain chief Markus Schaefer.
“Battery production in Thailand will enhance our global production network to six factories on the three continents,” adding to the automaker’s existing facilities in Germany, the US and China.
TAAP managing director Veerachai Chaochankij commented that: “TAAP is proud to be entrusted by Mercedes-Benz Manufacturing Thailand as the manufacturing partner for the new site in the global battery production network of Mercedes-Benz Cars. Our new battery factory is being built on a land plot of 48.000 m2 near the existing car assembly plant of Mercedes-Benz in Thailand. It will meet battery demand for Plug-In Hybrids in the Thai market.”
“With a firm commitment to quality production grounding on our strong belief in people, network and high workmanship, production competencies of our people will be reinforced with relevant skills and technical knowledge in Plug-In Hybrid batteries. As part of our preparation for the start of production, this will ensure that the quality of batteries from this Thai production is second to none globally,” Chaochankij added.
Dr. Uttama Savanayana, Minister of Industry in Thailand added: “Mercedes-Benz has applied for promotional privileges for its new investment in Plug-In Hybrid electric vehicle (PHEV) production, which coincides with Thailand’s automotive industry development towards the future of electric vehicles and supply chain development.”