LONDON (Nov. 9, 2011)—Pirelli & C. S.p.A. is establishing a joint venture in Indonesia to produce radial motorcycle tires, primarily smaller sizes for Asia but with some to be exported to the U.S. and Europe.
Pirelli said it will spend $91 million for the plant, which is expected on stream in 2013 and have the capacity to make 7 million units per year by 2016. The joint venture company is P.T. Astra Otoparts Tbk., according to Pirelli Chairman and CEO Marco Tronchetti Provera. A site will be announced in the coming weeks.
The venture will focus on radial tires for smaller motorcycles in the 50cc - 500cc engine range. The radial market in Indonesia, the world's fourth most populous country and one of the largest markets for motorcycles, is developing quickly, Tronchetti Provera said. The partnership hopes to take advantage of the move toward radialization.
Pirelli Tyre S.p.A. President Francesco Gori said the tires to be built in Indonesia are relatively small compared with the supersport products being made in Breuberg, Germany, and which will be made in the company's new China motorcycle tire plant.