New Pirelli Motorcycle Tire Plant
13 may 2012
Pirelli has signed an agreement with Astra Otoparts to build a motorcycle tire factory in Indonesia. The agreement was signed between Pirelli's motorcycle tire division senior vice president, Uberto Thun, and Astra Otoparts' president director, Ciewanto Pratignjo, during a visit by Italian Foreign Minister, Giulio Terzi, to Asia.
Under the agreement, 60% of the company will be owned by the Italian firm, while the remaining 40% will be owned by its Indonesian partner. The construction of the new factory, which will cover an area of around 25 hectares and be located near the Indonesian capital, Jakarta, is expected to begin in the last quarter of this year and be operational by 2014. It is expected to reach full production capacity by 2016, with an output of over seven million tires per year. Of these, three million will be sold under the Astra brand, while the rest will be sold under the Pirelli and Metzeler brands. Of the tires produced under the Italian brands, 20-25% will be sold in the secondary market in the Asia-Pacific region, while the remaining 75-80% will be distributed to all countries where Pirelli operates, except for South Africa.
Representatives of the Italian company claim that the new factory, which will be built in Indonesia, will increase motorcycle tire production capacity and ensure its presence in the largest economy in ASEAN. Additionally, producing locally will allow the company to avoid export duties.
Under the agreement, 60% of the company will be owned by the Italian firm, while the remaining 40% will be owned by its Indonesian partner. The construction of the new factory, which will cover an area of around 25 hectares and be located near the Indonesian capital, Jakarta, is expected to begin in the last quarter of this year and be operational by 2014. It is expected to reach full production capacity by 2016, with an output of over seven million tires per year. Of these, three million will be sold under the Astra brand, while the rest will be sold under the Pirelli and Metzeler brands. Of the tires produced under the Italian brands, 20-25% will be sold in the secondary market in the Asia-Pacific region, while the remaining 75-80% will be distributed to all countries where Pirelli operates, except for South Africa.
Representatives of the Italian company claim that the new factory, which will be built in Indonesia, will increase motorcycle tire production capacity and ensure its presence in the largest economy in ASEAN. Additionally, producing locally will allow the company to avoid export duties.