Bridgestone, one of the largest tyre manufacturers in the world, is set to establish a joint venture with auto-component manufacturer Astra Otoparts, which is a part of Astra International Indonesia. Both the companies are coming together to make rubber-based components.
In a press conference, Astra-Otoparts announced that in this joint venture, they will hold 49 per cent stake while Bridgestone will be a majority holder. The JV will focus on producing anti-vibration components for vehicles. Some of the components include engine mounts, suspension parts and body mounts. The manufacturing facility will be based in Purwakarta, West Java with an investment of $13.03 million.
Head of Investor Relations and Corporate Secretary of Astra Otoparts said that she could not disclose much about the factory as it is still being planned, except that it is expected to start mass production in January 2016. She also said that this JV would be a milestone for Astra Otoparts to directly partner with the global tyre producer.
Bridgestone has its operations in 170 facilities across 26 countries and the company achieved a total revenue of 3.67 trillion yen during the 2014 financial year. It is headquartered in Tokyo and has eight facilities that make anti-vibration components.
Astra Otoparts operates in seven businesses through its 34 subsidiaries, catering both domestic and international markets. The company’s spokesperson said the capacity of the new factory is still being studied, adding that it would depend on future developments in the automotive market, which was currently tainted by economic slowdown and consumers’ weak purchasing power.