Mando-Cakra parts deal

Mando-Cakra parts deal

SEOUL (AP): South Korea's leading auto parts maker said
yesterday it reached a tentative agreement with Indonesia's PT
Bimantara Cakra Nusa to set up an auto parts plant there.

Mando Machinery Corp. said the US$60 million venture will
churn out breaks, steering systems and air conditioners for
100,000 cars annually.

The memorandum of understanding calls for the plant to begin
operation in January, 1999. The deal is expected to be finalized
within three months, Mando said.

Bimantara already has another joint venture with South Korea's
Hyundai Motor Co. Under the deal, Bimantara assembles cars using
Hyundai parts.

Another South Korean auto-maker, Kia Motors Corp., has a 30
percent stake in the PT Timor Putra Nasional, the chosen favorite
if the new "national car" program that allows the venture lavish
tax breaks for three years.