Continental AG, the German tyre and rubber products manufacturer based in Hannover, is expanding the second phase of its Rayong plant with an annual production capacity of 3 million tyres and a total investment of more than €300 million (around 13 billion baht).
Annual production in the first phase stands at 3.5 million units.
The new project is expected to generate over 600 new jobs, reinforcing Thailand's role as a strategic hub for Continental in the Asia-Pacific region.
Chief executive Christian Kötz said the expansion aligns with the Thai government's policy to promote electric vehicles (EVs) and establish the country as Southeast Asia's EV manufacturing hub, which is driving strong demand for high-quality tyre products.
"The expansion project covers passenger cars, motorcycles and light trucks. It supports our ability to meet the rapidly growing demand for tyres across the Asia-Pacific region," Mr Kötz said.
Continental has set a long-term target of producing 15 million tyres annually across its global plants. The company reached a milestone in 2024 when it produced its 10 millionth tyre worldwide.
Since its initial investment in 2019 in Thailand, worth €250 million, Continental has operated on 470 rai of land in Rayong, employing more than 1,000 workers.
Currently, the plant produces 75% Continental-branded tyres and 25% tyres under the original equipment manufacturer category, with 90% exported to overseas markets and 10% sold domestically.
Despite competition from lower-priced Chinese imports, Continental continues to focus on premium quality and value.
Global challenges, such as geopolitical conflicts and fluctuating demand, have prompted the company to adapt quickly, offering customised designs and specialised tyres for EVs.
Thailand is now the third Asia-Pacific country hosting a Continental tyre factory, alongside India and China.
Worldwide, Continental operates 19 tyre plants and 16 R&D centres, with Thailand serving as a key export base to Asean, Australia, South Korea and Japan. In 2025, the company reported sales revenue of €13.8 billion, with Europe remaining its largest market.
Founded in 1871, Continental will celebrate its 155th anniversary in 2026, continuing its legacy as one of the world's leading tyre manufacturers.
