Sakai Heavy builds RI plant

Sakai Heavy builds RI plant

TOKYO (Nikkei): Sakai Heavy Industries Ltd. plans to build a
new plant in Indonesia to produce road-paving equipment and parts
as part of a broader effort to increase overseas sales, the
Nikkei Industrial Daily reported Monday.

Sakai Heavy will invest $2 million to set up the plant, which
is expected to begin operating by the end of this year, raising
the annual value of the company's output in Indonesia from about
Y100 million now to about Y1 billion in fiscal 2001.

Sakai Heavy's existing Indonesian facility produces only parts
for road-paving equipment, but the new plant is expected to serve
as an assembly base for road-paving equipment marketed across
Southeast Asia, as well as a low-cost supplier of parts for
equipment sold in Japan and the U.S.

The second plant is expected to have an annual capacity of 200
10-ton vibration rollers. The range of equipment will be expanded
once production of vibration rollers has stabilized.