JAKARTA, Indonesia (Aug. 24) — Indonesian tire maker P.T. Gajah Tunggal Tbk. said it plans to spend $170 million through 2011 to boost production capacity of radial passenger and motorcycle tires and inner tubes.
The company expects to increase production of passenger radials to 45,000 units per day from 30,000 via a three-stage program, a company spokesman said. The first part will go on line in mid-2008, the second a year later and the final stage in late 2010 or the early 2011.
Gajah Tunggal has an off-take agreement with Michelin, the spokesman said, and the French-owned company is increasing its requirements sharply. He said 90 percent of the automobile tires are destined for export, with Europe the No. 1 market followed by North America.
The four-stage motorcycle tire expansion will boost capacity to 105,000 units a day by 2011. The firm will increase its capability to make motorcycle inner tubes to 154,500 units a day by 2008, the spokesman said.