Ford Wins Loan Agreement With Thai Banks to Finance New Car Plant

Ford Thailand signs a TB15.5 billion ($511.2 million) loan agreement with a group of Thai banks for money to help finance a state-of-the-art passenger-car production plant nearing completion in Rayong province.

The auto maker will receive the funds from the Bangkok Bank, Tisco Bank and Exim Bank of Thailand.

New Thai car plant to launch production of Focus in 2012.

The new Thai factory, located 120 miles (193 km) southeast of Bangkok, will expand Ford’s local production and export capabilities.

It also will support plans to introduce eight all-new global vehicles in the Association of Southeast Asian Nations region over the next five years.

With an initial capacity of 150,000 units annually, the plant will start building the Ford Focus in 2012 for Thailand and other Asia/Pacific markets. About 85% of production will be exported.

“This financing agreement with our Thai finance partners plays a key support role in helping fulfill our One Ford global strategy and our promise to produce world-class Ford vehicles…in this fast-growing region,” Ford ASEAN President Peter Fleet says in a statement.

Additionally, the new facility will create up to 11,000 local jobs, including 2,200 direct and 8,800 indirect through its Thai supplier and dealer networks, the auto maker says.

The plant also will see the annual purchase of about TB24 billion ($791 million) worth of components through the domestic supply chain.