Bakrie to expand its molding plant

JAKARTA (JP): Automotive component producer PT Bakrie Tosanjaya has spent about US$24 million to expand the production facilities of its molding plant in Bekasi, West Java.

The company's president, Thomas Hanan Thoha, said yesterday the new facilities would raise the production capacity to 27,000 tons per year from the present 15,000 tons.

The expansion was made in anticipation of an increase in the demand for automotive components in the country, he said.

Thomas said the new production line would use a sophisticated automatic molding machine to produce automotive casting and engine blocks.

To boost its performance, Bakrie Tosanjaya has tied up with Jidosha Buhin Kogyo of Japan to set up a power train component plant in Karawang, West Java.

Total investment for the power train component plant is about $5 million.

He said the train component plant was expected to produce 720,000 ring gears per year and 250,000 drive shaft yokes per year.

"This plant will also produce rocker arm assemblies in early 1998," the company said.

Bakrie Tosanjaya has exported ring gears to Japan since 1986.

Bakrie Tosanjaya has so far produced flywheels, disc brakes, manifolds, pressure plates, hubs, differential cases and brackets.

Thomas said Tosanjaya will also establish new joint ventures with other international-reputed component producers for forging, aluminum casting and powder metallurgy in coming years.

The company will also cooperate with the Mitsubishi group of Japan through PT Krama Yudha Tiga Berlian to produce precision machining. (aly)