Tire maker of Achilles, Strada, and Corsa, PT Multistrada Arah Sarana Tbk (MASA) and a state-owned enterprises of Kazakhstan plan to construct a US$300 million tire facility production.
"We expect to have 40%-50% stake in the joint venture tire maker in Kazhakstan," said Even Goh, Head of Investor Relations Multistrada, last week.
Under the joint venture, Kazakhstan SOE will provide fixed assets, while Multistrada has committed to provide intangible assets such as how to make tire and technical assistance.
According to him, to construct the tire facility with the capacity of 3 million tires, they require 2 years. "About 50%-60% of the production is aimed for winter tire."
Multistrada, he said, expects to follow up the MoU with detailed agreement in the next 6 months.
Disclosure: No position at the stock mentioned above.