Bridgestone to establish auto parts JV in Indonesia
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Bridgestone Corp. plans to establish a joint venture company to produce anti-vibration rubber products for automotive vehicles in Indonesia.
The agreement was concluded on July 2 with PT Astra Otoparts Tbk, which manufactures and sells automotive parts in Indonesia.
The JV is to build a manufacturing plant of anti-vibration rubber products, which is set to start operations in January 2016, according to a Bridgestone statement. The total amount of the investment by Bridgestone and Astra Otoparts will be $13 million.
Bridgestone has seven facilities in five countries to manufacture automotive anti-vibration components. To achieve further global expansion, the firm said it needed a manufacturing base in Indonesia, a major car making state in the ASEAN region.
Questions & Answers
Q.What is the primary purpose of the new joint venture in Indonesia?
What is the primary purpose of the new joint venture in Indonesia?
The joint venture is being established to produce anti-vibration rubber products specifically for automotive vehicles. This will involve building a new manufacturing plant in the country.
Q.Which company is Bridgestone partnering with for this new venture?
Which company is Bridgestone partnering with for this new venture?
Bridgestone Corp. Has concluded an agreement with PT Astra Otoparts Tbk. This Indonesian company already manufactures and sells automotive parts within the country.
Q.What is the total investment planned for this joint venture?
What is the total investment planned for this joint venture?
The combined investment from both Bridgestone and its partner, Astra Otoparts, will total $13 million. This sum covers the costs associated with establishing the new facility.
Q.Why did Bridgestone choose Indonesia for this expansion?
Why did Bridgestone choose Indonesia for this expansion?
Bridgestone stated that a manufacturing base in Indonesia is needed to achieve further global expansion. Indonesia is identified as a major car-making state within the ASEAN region.
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