Jakarta. Astra Otoparts, a listed automotive parts manufacturer under the conglomerate Astra International, is set to join hands with Japanese tire maker Bridgestone on a Rp 174 billion ($13 million) joint venture to develop anti-vibration automotive components in Indonesia.
Hamdhani Dzulkarnaen Salim, president director of Astra Otoparts, and the company’s finance director, Djangkep Budhi Santoso, signed an agreement with Yasuhiro Suzuki, a director at Bridgestone, in Jakata last week, according to a filing with the Indonesia Stock Exchange (IDX) on Monday.
Tokyo-based Bridgestone will control 51 percent of the joint venture, while Astra Otoparts will own the remaining 49 percent, the statement said.
Bridgestone, one of the largest tire and rubber companies in the world, has more than 170 manufacturing facilities across 26 countries, and booked 3.67 trillion yen ($29 billion) in revenue last year.
Although a large chunk of the company’s sales come from tires, the remaining 16 percent is derived from other automotive components.
The joint venture, which will be located in Purwakarta, West Java, will “produce engine mounting, body mounting and suspension parts for four-wheeler vehicles,” starting from January next year, according to the statement.
Astra Otoparts has been expanding its capacity in the past few years, including an outlay of Rp 3.85 trillion last year to build three new automotive component factories in China and Indonesia.
Still, a slowing economy — which grew at 4.7 percent in the first three months this year — and a battered rupiah have stalled growth for the company, which still imports much of the raw materials for its products.
Profit at Astra Otoparts, whose shares are listed under AUTO on the local stock exchange, fell 70 percent to Rp 104 billion between January and March this year, from Rp 357 billion in the first quarter of last year as sales declined by 7 percent to Rp 2.87 trillion.
GlobeAsia
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