PT Gajah Tunggal IRC Manufacturing Indonesia recently held a groundbreaking event for the construction of its plant. The joint venture company between PT Gajah Tunggal and Inoue Rubber Company Ltd (IRC) of Japan, known as IGM, will manufacture motorcycle tyres under the brand IRC Tire.
This groundbreaking event marks the beginning of IGM to become an IRC Tire factory outside of Japan that will produce motorcycle tyres with the IRC Tire brand for the domestic OEM and replacement markets as well as for exports.
The plant is expected to start operations by 2019. Though the jv partners did not disclose the plant’s size or capacity, Gajah Tunggal said it was selling 5.8 acres of land at its Tangerang manufacturing complex to the joint venture for US$253 million. Gajah Tunggal is owned by Giti Tire Group (49.7%) and French tyre maker Michelin (10%).
President Director of IGM, Hirozo Misuno said in his speech that IGM expects more cooperation at a higher level between IRC and PT GT and that the latest plant is a new chapter of cooperation between the two companies that started working together in 1971.
The companies also said that with this new plant, IRC Tire can maintain its position as the market leader in the domestic market and increase brand equity in the international market.