Autotech to produce car components

Autotech to produce car components

JAKARTA (JP): Indomobil Investment Corp., an affiliate of the Salim Group, signed a joint venture agreement yesterday with Fujikiko Co. Ltd. and Marubeni Auto Sales Corp. of Japan to establish an automotive component plant with an investment of US$5.4 million.

Angky Camaro, a vice president of Indomobil, said the joint venture, named PT Autotech Indonesia, is 80 percent owned by Fujikiko. The remaining 20 percent is equally owned by Indomobil and Marubeni.

"The construction of the plant in Purwakarta, West Java, will be started in March and it will come on stream early next year," Angky said after the signing ceremony.

He said the company will produce components, including steering columns, seat recliners and rail assy-slides. The plant will have an annual capacity of 96,000 pieces, 132,000 pieces and 40,000 pieces respectively.

Autotech will export 50 percent of its production to the other member countries of the Association of Southeast Asian Nations (ASEAN) and Japan. It will sell the remainder on the domestic market, he added.

Besides Indonesia, ASEAN groups Brunei, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Fujikiko currently has seven automobile component plants operating in the United States, Sweden, Taiwan and South Korea.

Last month, Indomobil signed a joint venture agreement with Tochigi Fuji Sangyo K.K and Marubeni of Japan to manufacture car components in Cikampek, West Java. The venture has a total investment of $10 million.

Indonesia's automotive vehicle sales reached 385,000 units last year, of which 80,000 units were made up of makes sold by Indomobil, Angky said. (04)