JAKARTA: Automotive spare-parts producer PT Astra Otoparts Tbk has advanced its capital expenditure this year to IDR1.6 trillion compared to the initial projection at IDR1.2 trillion-IDR1.5 trillion.
Of total allocated capex, 54% will be benefited to add new products and 34% will be channeled to enhance existing production capacity, while the remaining will be used for supporting fund, revealed by Astra Otoparts President Director Siswanto Prawiroatmodjo.
The capex is sourced from internal cash and bank’s loan having a portion of 60%.
Meanwhile, the company has targeted to do expansion by constructing a new factory on 10-hectare land in Karawang, West Java and by forming a joint venture with Pirelli, Italy-based well-known tire producer.
Later, Astra Otoparts will control 40% shares in the joint venture having total investment to US$100 million. “In the near future, we will sign a contract with Pirelli. Now, we are still finalizing the negotiation process,” he disclosed. (t01/aph)