JAKARTA (Rambu Energy) – Kenda Rubber Industrial Co., Ltd., a major tire producer based in Taiwan, said that it plans to invest US$100 million to build tire manufacture in Indonesia, to tap growing automotive industry and consumer sector in the country.
Yang Yin-ming, chairman of Kenda Rubber, was quoted by China Economic News (www.cens.com) as saying that the planned investment is part of the company’s move to accelerate business deployment in the Association of South Eat Asian Nations (ASEAN) market. It aims to take advantage of the booming motorcycle and bicycle sales in this market.
The Kenda chairman said his company is planning to purchase a 30-hectare site in around Jakarta area to build the plant, which will initially focus on bicycle and motorcycle tires and would expand to passenger car radial (PCR) tires later on. (*)