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)