Fuso FJMitsubishi Fuso Truck and Bus Corporation (MFTBC) has announced it will construct a complete knockdown (CKD) assembly plant in Thailand.

In a first stage, the unit will put together Fuso’s heavy-duty FJ 2528C trucks, launched in Thailand earlier this year and designed for the rapidly growing construction sector.

Work on building the plant is scheduled to start next month with inauguration planned in the second quarter of 2019.

To ensure “production in Thailand for Thailand”, the company will invest €12m ($14m) in the plant to be located in the Eastern Economic Corridor.

MFTBC, a business unit of Daimler Trucks, added: “The state-of-the-art plant will conform to Daimler’s highest standards to ensure excellence for Thai customers.”

The announcement coincides with the Daimler group deciding its Fuso trucks and Mercedes-Benz trucks and buses businesses in Thailand will be managed by Daimler Commercial Vehicles Thailand (DCVT) as part of the group’s global Customer Dedication strategy.

DCVT was established in August 2016 as the official distributor of Fuso. Current plans include extending its Thai network to 14 dealers and 24 sub-branches this year.

Michael Kamper, senior vice-president and head of sales and marketing at MFTBC, said: “With its conducive business environment and strategic location in South-East Asia, Thailand constitutes a key market for our global growth strategy. DCVT’s strong performance gives us great confidence to further expand our business here with the construction of a new CKD assembly plant dedicated to the Thai market.”