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)