Dec 10, 2010

Astra Otoparts, TICO set new company

Toyota Industries Corporation (TICO) and DENSO Corporation (DENSO) will establish a new automotive air-conditioning compressor manufacturing company in Bekasi, Republic of Indonesia in January 2011.
The new company dubbed PT TD Automotive Compressor Indonesia (TACI) will be jointly established by PT Astra Otoparts Tbk and Toyota Tsusho C orporation, as well as TICO and DENSO.
"TACI is our 5th overseas compressor factory, which will increase our supply capabilities to meet the growing needs of the ASEAN automobile market," said M asaharu Suzuki, managing officer in charge of TICO's Compressor Division, in a press statement submitted to Indonesia Stock Exchange (IDX) today.
TACI will succeed PT DENSO Indonesia (DNIA)'s compressor operation and will be based on DNIA's current operations.
Production at TACI will commence in June 2011 and the new company plans to produce 1 million units in the first year of operation.
"In response to expanded customer demands in the ASEAN region, we intend to increase the annual manufacturing capacity of TACI from 1 million units to 1.6 million by the end of the fiscal year ending March 2016," said Akio Shikamura,s enior managing director of DENSO's Thermal Systems Business Group.
Additionally, TACI will produce and supply compressors for the Etios compactc ar that was developed by Toyota Motor Corporation for the Indian market.
TICO will control 50.1% holding in TACI, while Astra Otoparts and DENSO will hold 25.7% and 20% respectively.

Disclosure: No position at the stock mentioned above.

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