PT Evoluzione Tyre, the joint venture that factory Astra Otoparts established with Pirelli following the signing of an agreement in April 2012, is scheduled to enter production this month. Astra Otoparts says the factory’s production target for 2015 is 2 million motorcycle tyres and the total planned annual output is 7 million pieces; 4 million of these will be Pirelli or Metzeler branded tyres that will be sold in the domestic and export markets, and the remaining 3 million will be manufactured under Astra Otoparts’ Aspira brand name for sale both in Indonesia and abroad. Pirelli holds a 60 per cent share in the joint venture and Astra Otoparts the remainder.
Astra Otoparts, the Indonesian automotive component company that has partnered with Pirelli to set up a motorcycle tyre factory, has entered into an agreement with Bridgestone Corporation to establish another joint venture manufacturing company. This latest JV is non tyre-related and involves the manufacture of vibration rubber products for motor vehicles. The agreement was concluded in Jakarta on 2 July and was signed by Yasuhiro Suzuki, director of Bridgestone’s Diversified Original Equipment Division, and Hamdhani Dzulkarnaen Salim and Djangkep Budhi Santoso, president director and director of Astra Otoparts.
Although sales at PT Gajah Tunggal Tbk dipped 3.9 per cent (to Rp 3,075 billion, or £146.4 million) in the first quarter of 2015, this decline was attributed to challenges in the domestic market. The Indonesian tyre maker speaks of strong export market performance, and company president director Christopher Chan Siew Choong confirmed this focus at Gajah Tunggal’s annual and extraordinary meeting of shareholders on 29 June. In particular, he indicated that the USA shows particular potential.
Indonesia’s national annual tyre production currently exceeds 75 million units, with the Jakarta post suggesting there is room for more. With this in mind, the 9th Rubber & Tire Markets will take place in Jakarta, Indonesia between 19 and 20 August 2015, with a line-up pitched at those tyre manufacturers seeking growth in Asian markets.
Michelin has invested US$55 million for a 47 per cent share in a joint venture with the Barito Pacific Group (BPG). The two parties will work in Indonesia on the production of natural, eco-friendly rubber in a project that involves the reforestation of three concessions that were previously ravaged by uncontrolled deforestation, a total area of 88,000 hectares.
Following the appointment of Junichi Kumano as director of Bridgestone Corporation’s Aircraft Tire business division in February, Yoshikazu Shida has been named Kumano’s successor in his previous role of president director of PT. Bridgestone Tire Indonesia. Shida’s appointment to the Bridgestone subsidiary was officially announced at a ceremony on 6 March.
The introduction of Maxxis’ (Cheng Shin Rubber) manufacturing plant in Indonesia has been warmly welcomed by the country’s president-elect, and the local industry will have the chance to see the company’s plans up close. Maxxis will exhibit at Tyre & Rubber Indonesia 2015 between 18 and 22 March 2015 at JIExpo Kemayaran, Jakarta, with a 144sqm booth.
Kordsa Global has opened its second site in Indonesia. The company invested US$100 million in the project and the plant, located in Bogor-Citeureup (Java) includes an 18 kiloton tyre cord fabric facility and a 14 kiloton third and fourth-generation polyester HMLS yarn facility. Over 200 people will be employed at the two operations. The site’s official opening was attended by Sabanci Holding chairperson Guler Sabanci, Mehmet Pekarun, SBU industry president of Sabanci Holding and chairman of Kordsa, Cenk Alper, Kordsa Global CEO, officials from Indonesia’s government and local administrators.
According to Indonesian news agency Antara News, tyre maker PT Multistrada Arah Sarana – manufacturer of the Achilles, Corsa and Strada tyre brands – has signed a contract to build a production facility in Kazakhstan. The agency quotes Kazakhstan’s ambassador to Indonesia, Ashkat Orazbay, as stating that “a contract has been signed between Multistrada Indonesia and a Kazakhstan-based company to build a tyre factory.” Antara News did not report the name of the Kazakhstani company or give any further details about the project.
A group of “leading rubber processors from China” are set to visit Thailand, Indonesia and Myanmar to survey sites to establish rubber plants in the next week or so. Thailand’s The Nation reports that about 10 rubber processors from Shandong province and representatives from the China Council for the Promotion of International Trade are scheduled to visit Indonesia, Myanmar (Burma) and Thailand between 19 and 25 November.
The group reportedly consists of around 50 representatives from both companies and government agencies. It will reach Thailand on 23 November where it will stay for two to three days with a view to considering “opportunities to invest in the South and Northeast, the country’s major rubber tree growing areas”.
Indonesia’s newly elected president promised support for Maxxis’ planned tyre factory in the country in a meeting with company officials in Jakarta at the end of September. Accompanied by members of the company’s Indonesia management team and a representative of Taipei’s Economic and Trade Office in Jakarta, Maxxis president Dr Wally Chen met with president-elect Joko Widodo 29 September.
According to Pieter Tanuri, Indonesia’s PT Multistrada Arah Sarana aims to increase its domestic market share from 13 to 15 per cent in the next two or three years. The president director was quoted by The Jakarta Post as saying this two per cent rise would be achieved through increasing total production capacity to around 17 to 18 million tyres per annum over the next year. Currently, Multistrada produces ten million car tyres and six million motorcycle tyres.
Cheng Shin Rubber Ind. Co. Ltd. (the parent company of Maxxis International) is investing over US$500 million in building new plants in Indonesia and Taiwan as well as expanding three existing plants in China.
Hankook has slowed its production in response to amassing a record inventory glut. Seoul’s Yonhap News Agency reports that the manufacturer has 660,000 unsold tyres, or 8.5 per cent of its monthly 7.75 million production capacity. The agency quotes an unnamed Hankook source as saying that the growth in demand expected after March had failed to materialise, leading to the surplus.
At Taiwanese tyre maker Cheng Shin Rubber’s Annual General Meeting, the son of company founder Lo Chieh (Luo Jie) was appointed the firm’s new chairman of the board. Lo Tsai-Jen (Lo Cairen), previously vice-chairman, replaces his 88-year old father as chairman effective 17 June. Lo Tsai-Jen became vice-chairman of the board in 2010; prior to that he served as general manager.