Hankook confirms interest in Indonesia's P.T. Multistrada

By Bruce Davis, Crain staff (TB)

Jakarta, Indonesia -- Hankook Tire Co. Ltd., which recently broke ground on a $353 million tyre plant in Indonesia, is among the bidders to buy Indonesia's P.T. Multistrada Arah Sarana Tbk., whose flag brands are Achilles, Corsa and Strada.

Hankook confirmed it's involved in the bidding process for Bekasi, Indonesia-based P.T. Multistrada, which reported $220 million in sales in fiscal 2010 and $117 million through the first six months of 2011. The firm generates about three-fourths of its revenue from exports.

News reports from Indonesia also identify TPG Capital L.P.-which last year acquired Huntersville, N.C.-based American Tire Distributors Holdings Inc.-and Japan's Yokohama Tire & Rubber Co. Ltd. as companies engaged in the bidding process.

P.T. Multistrada has operated under that name since 2004, when investors took over P.T. Oroban Perkasa and undertook a three-year, $100 million modernisation of the plant in Bekasi. The firm lists annual capacities of 8.3 million consumer and 4.7 million motorcycle tyres.

Multistrada also produces private label tyres for a number of US distributors.

Hankook did not comment on its reasons for bidding on Multistrada. The plant that Seoul, South Korea-based Hankook is building in Bekasi is designed to be an export base for the North America and Middle East markets, as well as a regional business hub for emerging Asian markets.

During the first phase of development, Hankook said it anticipates initial capacity of approximately 6 million tyres per year, with more than half of that capacity dedicated to the US market.

From Tire Business (A Crain publication)