Goodyear to expand production capacity

JAKARTA (JP): PT Goodyear Indonesia, a tire manufacturer listed on the Jakarta and Surabaya stock exchanges, will increase its production capacity from 7,000 to 11,000 tires a day.

Goodyear's sales manager, Gani Ghazali, said here yesterday during the launching of the company's new product that the company will invest at least US$64 million for the plant's expansion.

"The expansion program will be funded largely by our retained earnings," Ghazali told newsmen.

The company's after-tax profits rose to Rp 29.49 billion (US$13.67 million) last year from Rp 27.95 billion ($12.96 million) in 1992, he added.

The domestic demand for automobile tires is about six million per year. Eighty-five percent of the tire market is dominated by three companies, PT Goodyear Indonesia, PT Bridgestone and PT Gadjah Tunggal.

He said Goodyear's share of the domestic market is 27 percent.

Last year the company produced 2.21 million tires and plans to manufacture 2.27 million this year.

The company's technical manager, Jonner Hutajulu, said Goodyear's new tire product "Aquatred" is mainly aimed for wet roads, especially during the rainy season. (02)