Ford and Mazda to build new $500 million Thai plant

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BANGKOK/TOKYO (Reuters) - Ford Motor Co (F.N) and Mazda Motor Corp (7261.T) said on Tuesday they would build a $500 million plant in Thailand to build up to 100,000 cars a year.

The factory, to be built next to their existing pickup truck plant in the eastern province of Rayong, would produce the Mazda2/Demio subcompact car and an unnamed small Ford car, the two firms said in a statement.

Production would start in 2009 and raise the capacity of their AutoAlliance Thai joint venture to 275,000 vehicles a year from 175,000, they said.

The car would be sold throughout Southeast Asia and in Australia, New Zealand and South Africa, the statement said.

The investment would be split equally between Mazda, held one-third by Ford, and Ford, it added.

The two automakers had been expected to announce plans to boost production in Thailand since Mazda Executive Vice President Robert Graziano said in March they had entered discussions with the Thai government on the issue.

Another Mazda executive said then that some of the added capacity would be used to supply demand in Europe.

Mazda remodeled its subcompact in July, saying it aimed to sell at least 130,000 units a year.

Last month, Ford and Mazda opened a new factory in Nanjing, China, with local partner Chongqing Changan Automobile Co. The 160,000 unit a year factory also builds the Mazda2 model.

Ford and Mazda's current Thai factory builds only pickup trucks, mainly for export.
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