Japan’s Furukawa Battery has joined forces with Indonesia’s second-largest automotive group, Indomobil Sukses Internasional, for the production and sale of automotive batteries in Indonesia.
The two partners are investing USD19m in a new factory on a 6.6 hectare site near the West Javan town of Purwakarta, under a newly-established joint venture called PT Furukawa Indomobil Battery Manufacturing.
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A second joint venture, PT Indomobil Battery Sales, will be responsible for sales of the FB-branded batteries. The Japanese company will have a 51% stake in the production joint venture and 49% of the sales joint venture.
The Indomobil group has vehicle production and sales joint ventures with Suzuki, Nissan and Hino and currently sources batteries from GS Astra, which is part of its competitor Astra International group, and GS Yuasa.
With Nissan and Suzuki both ramping up production capacity, economies of scale are improving within the Indomobil group. The new battery plant is expected to become operational in the first quarter of 2015 with 300 staff.
