Michelin to buy Gajah Tunggal

According to Modern Tire Dealer, quoting Indonesian Newspapers, Michelin is negotiating with Singapore-based Garibaldi Venture Fund Ltd. to take over the tyre company. Garibaldi recently bought the 78 per cent share in Gajah Tunggal released by the Indonesian Bank Restructuring Agency.

Gajah Tunggal is expecting sales figures for 2003 to increase by 17 per cent, with a target of a 20 per cent increase for 2004. The company’s outstanding debts totalled 550 million US dollars in 2003, and are planned to be repaid over the next six years. Gajah Tunggal is by far the largest Indonesian tyre producer with two factories in Indonesia.