JAKARTA, Indonesia (Aug. 2, 2012)—Indonesian tire maker P.T. Gajah Tunngal Tbk. said it will spend in excess of $250 million during a two-to three-year period to build a tire proving grounds and add radial truck/bus tires to its production capabilities.
Gajah Tunggal spent $108 million earlier this year to acquire 267 acres of land in Karawang, Indonesia, where it plans to build a tire proving ground. The site also could be the location for a second tire plant to complement the firm's manufacturing complex in Tangerang, Java, the firm said.
Gajah Tunngal did not elaborate on the timing of the new tire plant. The firm plans to break ground on the proving grounds in the coming months and expects to complete it in two to three years.
The company is 49.7-percent owned by Singapore-based Chinese tire maker GITI Tire Pte. Ltd.