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.