Astra Otoparts, Indonesia’s largest automotive components manufacturing group, has signed a new joint venture agreement with Japan’s MetalArt Corporation to build and operate a new engine components plant in Indonesia.

The two companies plan to spend US$45m on a factory in Karawang, around 70km east of Jakarta, to make crankshafts, gears and conrods for four-wheeled vehicles.

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The plant is scheduled to begin operations in July 2014, with an output target of 60,000 parts for 2014. The production rate is expected to rise dramatically in subsequent years, with the potential to exceed 8m parts by 2017.

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