Automotive wheel rim manufacturer PT Pakoakuina, part of the Triputra Group, has partnered with Japan’s Topy Industries Ltd. for the establishment of a joint venture in the wheel rim business to tap both domestic and Southeast Asia’s growing truck and bus markets. Pakoakuina holds a 30 percent stake in the new company, named PT Topy Palingda Manufacturing Indonesia, while Topy Industries control the remaining 70 percent.
The total investment in the joint venture stands at Rp 600 billion (US$61.96 million), 60 percent of which will be funded by its shareholders, while the rest will be generated from bank loans, according to Topy Palingda director Hanung S. Talogo. Next month, Topy Palingda will start building a wheel rim factory on a 50,000 square-meter site at Suryacipta Industrial Park in Karawang, West Java.
The factory will have an annual production capacity of two million rims for both standard and tubeless tires, and is expected to serve the truck and bus markets in early 2014. Topy Palingda targets to produce a total of 100,000 rims per month next year. By 2016, it will increase its monthly production volume to 150,000 rims. Topy Palingda president director Norio Akiyama said that rising demands for trucks and buses in the Southeast Asia region, including Indonesia, had provided wider business opportunities for automotive industry players.
Data from the Indonesian Automotive Industry Association (Gaikindo) shows that bus production volume grew 27.9 percent to 5,299 units last year, while that of pickups and trucks climbed 16.5 percent to 316,757 units. Compared to 2006, the production volumes for buses and trucks have grown by more than fourfold and threefold, respectively. According to Pakoakuina president commissioner Hadi Kasim, Topy Palingda will also export its rims to Malaysia, Thailand and other Southeast Asian countries.
However, exports will only consist of wheel rims for tubeless tires as there is no domestic demand for such a product at the moment. “We hope to export around 20,000 rims per month when production starts,” he said. So far, Pakoakuina’s productions of truck and bus wheel rims have been managed by one of its business units, PT Palingda Nasional. As an original equipment manufacturer, Palingda produces rims for a number of clients including brands Hino, Isuzu, Mitsubishi and Toyota.
It currently controlled 60 percent of the domestic truck and bus rim market share, Hadi said. Palingda would cease productions following the commercial operations of the joint venture, he added. In the meantime, PT Inkoasku, Pakoakuina’s other business unit, is in charge of manufacturing steel wheel rims for the country’s passenger car market. Pakoakuina itself produces alloy aluminum rims for passenger cars and motorcycles. Some of the alloy aluminum rims are exported to Europe, Japan, Malaysia and Thailand.
In 2012, Pakoakuina reported that its combined sales volume had reached 5.9 million rims. This year, according to Hadi, it expects to produce 4.2 million steel and alloy aluminum wheel rims for passenger cars, and 1.1 million sets of motorcycle wheel rims. Meanwhile, Tokyo-based Topy Industries Ltd. also produces both steel and aluminum wheel rims for passenger cars, buses and trucks in Japan. Its involvement in the joint venture adds to the amount of Japan’s investments in the country.
The Investment Coordinating Board (BKPM) estimates that Indonesia will be able to meet its yearly investment target of Rp 390 trillion in 2013, supported by higher foreign direct investment (FDI), which is expected to account to more than 60 percent of the figure.
source : the jakarta post
source : the jakarta post
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