Goodyear to expand production capacity

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)