Indonesia’s PT Gajah Tunggal announced plans to expand its tyre business by investing IDR5 trillion (US$526m) over the next three years.

President-director, Christopher Chan, said the company plans to build a new automotive tyre production facility in Karawang, around 70km (40 miles) east of the capital city Jakarta, which will help lift revenue by over 50% to IDR18 trillion from IDR11.8 trillion last year.

Its current plant in Tangerang, 30km/20 miles west of Jakarta, has the capacity to make 90,000 motorcycle and 45,000 passenger vehicle tyres per day – mainly for the replacement market. 

Chan said Gajah Tunggal has acquired 100 hectares of land in Karawang, 60 of which will be used to build a proving ground which will be crucial to win OE business. 

The remaining 40% of the land will be used to build a new tyre production facility. The Karawang area is Indonesia’s fast-expanding automotive manufacturing hub, home to Toyota and Honda with several new plants under construction.

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