Renault has confirmed rumours that it is considering opening a production plant in Indonesia as it ramps up production outside of France, according to a report in La Tribune newspaper.
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The report said that back in June, an Indonesian newspaper reported that the French group planned to invest 400m euros in Indonesia to build a plant with an annual production capacity of between 150,000 and 200,000 cars.
The French group continues to increase its production capacity outside western Europe.
At the beginning of September, Renault signed an agreement to build a large production plant in the Moroccan city of Tangiers. The plant is expected to become operational in 2010 and initially produce 200,000 cars a year, in partnership with Nissan.
The French group has also recently increase its production capacity in Turkey by some 33%, and Romanian subsidiary Dacia is also expected to increase its production capacity by a similar percentage.
Meanwhile, South Korean subsidiary Renault Samsung has just started to produce the new 4×4 model which will be sold in the Asian country as from next month and in Europe as from May next year. Production is expected to reach 100,000 units a year, including two-thirds under the Renault marque, La Tribune said.
Production outside France currently accounts for 64% of the group’s total production, compared with 48% three years ago, the report added.
