Interhides aims to double capacity
Thai leather manufacturer Interhides expects to double its production capacity after setting up its seventh plant, which will begin operating in the second quarter of 2012.
The company currently has a production capacity of 230,000 square metres per month.
The seventh plant is 60% finished and when production begins, the company’s capacity will double to around 5.6 million square metres per year, which will support new orders.
“The leather car-seat business is growing in line with the auto industry, now that Toyota has resumed operations after a halt following the tsunami,” said CEO Ongart Thumrongsakunvong.
The company is in the process of finalising orders from one automobile maker in Europe by the end of this year.
“If the deal is secured, it will significantly help the company’s sales as well as diversify risks, as the main market will not entirely be focused on Japanese companies,” said Mr Ongart.
The company’s customers include Honda, Nissan, Mazda, Ford, Mitsubishi and GM. 70% of its production is sold domestically, while the rest is exported to countries including India, Malaysia, the Philippines, Indonesia, Vietnam and Australia.
Once the seventh plant is operational, the company plans to increase exports to 50%.
According to KGI Securities (Thailand), Toyota’s plan to restore production capacity to 90% of normal levels starting this month signals a recovery in the world automotive industry.
