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The Italian company, the world's fifth largest tyre manufacturer, has entered into a joint venture to strengthen its presence in one of the biggest motorcycle markets in the world

Pirelli is setting up a joint venture with an automotive component maker to build a motorcycle tyre factory in Indonesia.

Pirelli will hold a 60 percent stake in the enterprise and Astra Otoparts will hold the remaining 40 percent, with $120 million to be invested into the project – Pirelli’s first foray into Indonesia. Pirelli also produces tyres in 20 manufacturing plants throughout the globe.

The plant will be based on 25 hectares of land in Karawang, West Java, producing tyres for OEM and replacement purposes.

“The new factory is expected to become operational from the second half of 2013, with an estimated production of around two million conventional motor tyres in 2014,” the joint statement said. “When fully operational in 2016, it could reach seven million.”

When that mark is reached, round three million tyres will be sold under the Astra brand, while the remaining four million — about 25 percent of Pirelli’s entire global motor production — would carry the Pirelli brand.

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Published : Thursday, 26 April 2012
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