Yamaha Motor will build a second motorcycle plant in Indonesia, scheduled to be operational from January 2006, to meet a surge in demand there.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Reuters said the new plant, which would cost about 7.1 billion yen, or about $US67 million, will have an annual production capacity of 300,000 units, which is expected to increase to 600,000 units by 2007.
Yamaha reportedly said in a statement that the second plant would be operated by a new, wholly owned subsidiary, PT Yamaha Motor Manufacturing West Java.
The world’s second-largest motorcycle maker told Reuters it expected total demand for motorcycles to reach about 4 million units in Indonesia in 2004, up 36% from a year ago, as the country enjoyed a period of political stability and economic growth.
Yamaha expected to sell 880,000 motorcycles in 2004 in Indonesia, the third largest motorcycle market after China and India, and sales were likely to reach 1.2 million units in 2005, the report added.
Reuters said the new plant will be located in the Karawang Industrial District in West Java, Indonesia, and will initially have 700 employees.
Yamaha Motor already has a plant in Jakarta, whose output capacity is to be increased, and the two plants would have a combined annual production capacity of 1.8 million units by 2007, the company said, according to Reuters.
