Pirelli gets green light to build Indonesian plant

19th July 2012

Italian tyre giant Pirelli has been given the green light to build a new plant in Indonesia, it has been announced.

The Investment Coordinating Board (BKPM) has granted Pirelli permission to build the $126 million (£80.5 million) facility, which will produce motorcycle tyres.

Last year, Pirelli signed a deal with component maker PT Astra Otoparts to construct its first factory in Indonesia and it is now hoping that work on the site will begin later this year.

Speaking at a press conference, Chatib Basri, chairman of the BKPM, revealed that the board is keeping an eye on foreign investment in the country.

"July [investment] figures are relatively okay. What we need to be careful of is [investment figures] in the fourth quarter or in 2013," he said.

The plant is expected to produce seven million tyres a year by the time it becomes fully operational at the end of 2016.

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Posted by Danielle Barge