Astra, Isuzu form venture

Astra, Isuzu form venture

TOKYO (AFP): Japan's Isuzu Motors Ltd. and PT Astra International of Indonesia will set up a joint venture in Indonesia to produce cylinder blocks and cylinder heads, an Isuzu official said yesterday.

Astra will hold a 51 percent stake in the venture, with Isuzu, which has close links to General Motors Corp. of the United States, holding the remaining 49 percent, the official said. Astra and Isuzu are expected to sign a contract this week, the official said.

The venture will be operational early 1998, with a monthly output target of 500 tons of cylinder blocks and cylinder heads to be used in 2,500cc diesel engines, the official said.