Nissan, Salim Group set up car venture<\/p>\n
TOKYO (AFP): Japan's Nissan Motor Co. Ltd. announced Tuesday
\nplans to set up a 3.4-billion-yen (US$40 million) car assembly
\nventure in Indonesia with local group Salim and Japanese trading
\nhouse Marubeni Corp.<\/p>\n
The new company, based in western Java, will be the Japanese
\ncarmaker's first affiliate in Indonesia, producing Nissan,
\nChrysler, Volkswagen and Volvo vehicles on a knockdown basis from
\nJuly next year, a statement said.<\/p>\n
Nissan said the new plant, to be built on a 12-hectare (30-
\nacre) site at Bukit Indah east of Jakarta, would join its mutual
\nparts supply system in other members of the Association of
\nSoutheast Asian Nations (ASEAN).<\/p>\n
Production capacity is estimated at 12,000 units a year, of
\nwhich 8,000 will be various Nissan models including the
\nPathfinder multi-purpose vehicle. The remaining 4,000 units will
\ncover various Chrysler, Volkswagen and Volvo models.<\/p>\n
Nissan will hold 35 percent of the new company, to be known as
\nPT Ismac Nissan Manufacturing and initially capitalized at 1.7
\nbillion yen. The Salim group's Indomobil will hold 55 percent and
\nMarubeni 10 percent.<\/p>\n
Japan's second-biggest carmaker has until now contracted its
\nIndonesian vehicle assembly to PT Ismac, a unit of Indomobil.<\/p>\n
But Ismac, which also assembles for other carmakers, has
\nreached the upper limit of its production capacity of 7,200 units
\na year and will close its existing plant and cease operations
\nonce the new venture starts.<\/p>\n
The Japanese carmaker said vehicle demand in Indonesia was
\nexpected to jump from 320,000 units last year to 500,000 units in
\n2000, supported by the country's high rate of growth and its
\npopulation of 190 million people.<\/p>\n
\"With the construction of this new plant, Nissan aims to
\nstrengthen the foundations of its business operations in the
\nIndonesian market.<\/p>\n
\"In addition, it will give Nissan a production base in every
\nmajor ASEAN market, and is expected to further expand the
\ncompany's system of mutual parts supply among its production
\ncenters under the brand-to-brand complementation scheme in effect
\nin the ASEAN region,\" the statement said.<\/p>\n
ASEAN groups Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore and Thailand.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nissan-salim-group-set-up-car-venture-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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