Indomobil to make ACs

Indomobil to make ACs

JAKARTA (JP): Indomobil Investment Corporation, Anugerah
Idealestari and Japanese firms Zexel Corporation and Itochu
Corporation agreed here yesterday to establish a joint venture to
produce automotive air conditioners.

President of Indomobil Group Soebronto Laras said the joint
venture, to be named Zexel AC Indonesia, would invest around
US$10 million in the plant.

Zexel Corporation will have a 40 percent stake in the joint
venture, while the other three partners will each own 20 percent.

"Zexel AC is estimated to start commercial production in April
1997 and is set to produce 80,000 cooling units for AS system and
60,000 automotive AC systems a year," Soebronto said after the
signing of the agreement for the establishment of the joint
venture.

He said that in the first two years, all air-conditioning
systems and components to be produced by the joint venture would
be sold domestically. "We will start export activities in the
third year," he added.

Soebronto said the prospect for automotive air-conditioning
facilities in the local market is very promising, given the
continued increase in car demand.

Next year, domestic car production is expected to rise 40,000
vehicles to reach 360,000 vehicles from this year's total
production of 320,000 units, he said.

The increase in car production would certainly push up the
demand for car air conditioners. (04)