Multistrada expanding tyre plant, NR activities

ERJ staff report (TB)

Jakarta, Indonesia - Indonesian tyre maker P.T. Multistrada Arah Sarana Tbk has earmarked investments totalling $112.5 million (Euro 89.5 million) to expand capacity for car and motorcycle tyres at its plant in Bekasi Jawa Barat and acquire land for expanded natural rubber cultivation.

Multistrada, producer of the Achilles, Corsa and Strada brands as well as private brands for a number of US companies, has allocated $70.6 million to buy machinery and equipment to expand tyre capacity. Multistrada did not elaborate on the scale of the expansion but said the project will start later this year before year-end.

Multistrada's plant is rated at 28 500 car and light truck tyres and 16 000 motorcycle tyres a day with more than 3300 employees. Annual sales were $328 million last year.

On the NR front, Multistrada is spending nearly $42 million to clear land for and plant rubber trees on about 12 500 acres of land within an area covering 81,500 acres the firms owns in Kalimantan on the island of Borneo. The planting is expected to take two to three years.

Multistrada also has land rights covering an additional 313 700 acres of land for planting rubber.

In addition to developing the NR plantations, the company said it plans to build a $10 million rubber processing factory capable of handling 24 000 tonnes a year, which would cover the needs of production for 10 million to 15 million car tyres a year.

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Article from Tire Business