Pirelli to set up Indonesian JV plant
Indonesian automotive component company PT Astra Otoparts Tbk has signed a Memorandum of Understanding with Pirelli to build a motorcycle tyre factory in a yet to be announced location in Indonesia. This plant, Pirelli’s first in the country, will focus on production to meet both local demand and for export to Asean and other global markets.
Under the terms of the MoU, Pirelli will take a 60 per cent share in the joint venture project. Astra Otoparts reports the new factory will require a total investment of US$90 million, starting in 2012 and spread over three years. Production is expected to begin in 2013 and reach full operation in 2016, with an annual production capacity of seven million motorcycle tyres.