JAKARTA: Tire producer PT Multistrada Arah Sarana Tbk aims to rise it revenue as much as 25% from IDR2.1 trillion last year due to the completion of production facilites expansion.
Head of Multistrada Investor Relations Even Go said that to achieve the revenue target, the company will be assisted by the advancing production facility that has been conducted since last year.We expand our distribution network as well, either in domestic market or export. Sales still supported by export that contribute as much as 75%. None the less, domestic market also has been showing positive movement.The producer of Achilles, Corsa, and Strada tires is under the process of expansion. Capacity expansion is including passenger car and motorcycle tire.Car tire production is expected to hike 28.57% to 22.500 tires per day on this first semester from 17,500 tires per day on December 2010. Expansion will continue so tire production at the end of the year could be at 28.500 tires per day.Production capacity for motorcycle is expected to jump 100% to 16.000 tires per day on the first semester in 2011.About 70%-80% from the total passenger car production will be exported to more than 60 destination countries. Motorcycle tire production is absorbed by domestic market.The company was awarded a syndication loan to fund expansion from number of banks such as PT Bank International Indonesia Tbk, PT Bank CIMB Niaga Tbk, PT Bank CIMB Niaga Tbk and HSBC with the total of US$143 million and will be mature in 5 years and from Unicredit AG Jerman for about US$42 million and will be expire in 6 years.Last year, the company has absorbed US$25 million from the total loan that was used to fund machinery procurement and factory construction.We will take another US$20-US$30 million for our Q I/2011 capital expenditure, said Even.They are also seeking new international markets e.g. countries in the Middle East and North America, and projected could penetrate 100 destination countries. Multistrada also have been working on premium grade tires in China since October last year.The MASA-coded share at yesterday closing was unchanged at the level IDR330 and establishes a market capitalization of IDR2.02 trillion. (t05/wiw)
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