The proposed establishment would cost an estimated Bt88 million (£1.38 million) and would service the Far East region.

Board of Investment deputy secretary general Hiranya Sujinai said the suggested incentives were earmarked for a regional operating headquarters that could supply raw materials and parts for Michelin tyres, conduct research and development, promote regional sales and marketing as well as to provide training programmes for Michelin personnel in a number of countries, including China, Japan, Australia, South Korea, Malaysia, Singapore and Taiwan.

Siam Michelin has invested an estimated £110 million in Thailand in recent years, and manufactures and distributes Michelin, SiamTyre and BFGoodrich tyres. The company holds a 40% share in Thailand’s OE radial market, and 12% of the replacement market. The range of Michelin family tyres produced in Thailand is comprehensive, covering everything from motorcycle through to OTR and aircraft tyres.