BANGKOK - Thailand's Board of Investment (BOI) agreed on Tuesday to provide tax and promotional privileges to Toyota Motor to help the automaker move its global pickup production base to Thailand from Japan.
Toyota and its components and parts suppliers plan to invest 42.8 billion baht ($993 million) over the next two years in the project, which will create jobs for 3,000 Thais, the BOI said in a statement.
The state agency did not detail the benefits being given to the carmaker.
BOI said Toyota planned to launch the project in 2004, with a maximum production capacity of 200,000 light pickups a year.
It said the project required Toyota to expand its current assembly plant at Bangkok's eastern suburb of Samrong, where its expanded facility is due to start production from August 2004.
Toyota first announced the project last September, when it said the investment would make Thailand its biggest pickup production and export base in Asia outside Japan.
BOI said Toyota would directly invest about 25 billion baht in the project, with the rest of the investment coming from affiliated parts manufacturers. It said about 60 percent of trucks produced under the project would be geared for export.
BOI said part of the investment would go towards expanding Toyota's parts warehouse and distribution centre in southeast Chonburi province.