While many new automotive plans in Thailand are delayed or shelved because of the poor outlook of the industry, at least two major projects are preparing to begin commercial production this year as planned.

One project making key auto parts will be officially opened tomorrow, while the other which will build cars is slated for a July 13 launch.

The plants are meant to strengthen business in Thailand and make it a major regional manufacturing hub.

The German supplier Continental AG will open its 100-million (5-billion-baht) plant in Rayong tomorrow. It aims to become a leading automotive components and systems supplier in Thailand and across Asia.

The Thailand plant is the company's fourth in ASEAN after Malaysia, the Philippines and Indonesia. It plans to produce 500,000 diesel commonrail systems, 2.5 million fuel-injection units, and 500,000 fuel rails and interior electronics components. The company hopes to increase its Asian sales to 20-25% of its total by 2015.

AutoAlliance Thailand, the Ford-Mazda joint venture, is scheduled to open its new manufacturing plant in Rayong in July 13, with full production to begin in the fourth quarter.

The US$500-million integrated automobile manufacturing plant will make small cars for both export and domestic consumption. It has an annual capacity of 100,000 units to produce Mazda2 and Ford Fiesta subcompacts.

Production of the Mazda2 will begin in the fourth quarter while the Fiesta will start in the first quarter of next year.

Mazda hopes the popularity of the Mazda2 will more than double its market share in Thailand to 5% next year from 2.2% now, and Ford is planning on a jump to 3% next year from 1.7% this year.

The existing plant in Rayong began production in 1998 at an annual capacity of 175,000 units.

AutoAlliance currently produces three major pickup models: the Ford Ranger, Mazda BT-50 and Ford Everest.

Ford is the major shareholder at 50%, while Mazda holds 45%. The remaining 5% is owned by Mazda Sales (Thailand) Co.