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.