"The construction of the plant is scheduled to be completed in 2015, with maiden production expected in 2013. The plant will operate at full capacity in 2016," Astra Outoparts Director Robby Sani said here on Wednesday.
He said the two companies had agreed to set up a joint venture company, with Pirelli holding a 60 percent stake and Astra Outoparts a 40 percent stake.
"The domestic market for motorcycle tires has been growing rapidly so we intend to build a motorcycle tire plant in association with Pirelli," he said.
He said Astra Outoparts had had its own tire brand, namely Aspira. But the company did not get involved in the production process.
In addition, Aspira was not sold to original equipment manufacturers (OEM) but to the aftermarket, he said.
He said the domestic market for motorcycle tires would remain prospective thanks to rising domestic motorcycle sales.
Domestic motorcycle sales are expected to record an all time high of 8 million units this year compared to 7.3 million units last year.(*)
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Editor: Jafar M Sidik
Copyright © ANTARA 2011
