Pirelli and Astra Otoparts ink deal for new plant

Pirelli and Astra Otoparts ink deal for new plantPIRELLIi & C SpA and automotive components maker, Astra Otoparts Tbk PT have made an agreement to construct a new factory in Indonesia. The factory will be Pirelli’s first in the country for the production of conventional motorcycle tyres.

In the agreement, Pirelli will hold the majority position with 60% of the capital and Astra will hold the remaining 40%. The project requires a total investment of US$ 120 million between 2012 and 2014 for the construction of a new factory near Jakarta.

Construction of the factory is expected to begin in the fourth quarter of 2012 and will become operational from the second half of 2013, with an estimated production of around 2 million conventional moto tyres in 2014 which when fully operational, in 2016, could reach 7 million pieces total. Of these, 3 million will be sold as Astra brands, while the remaining 4 million, equal to about 25% of all Pirelli’s moto production in the world – will carry Pirelli or Metzeler brands.(PRA)