Sime to Increase Tyre Exports

Malaysian news sources are reporting that Sime Darby Bhd’s tyre division, Continental Sime Tyre Sdn Bhd, is planning to increase its production.

Continental Sime, a 51:49 joint-venture company between Germany-based Continental AG and Sime Darby Bhd, has the largest tyre dealer network in the Malaysia, totalling 1,000 outlets.

The company currently produces 5 million tyres a year and is set to add another half a million to its annual output. The move is designed with a view to enhancing the companies export levels.

“Currently, only 10 per cent of our total exports go to ASEAN countries while about 30 per cent go to Australia, another 30 per cent to Europe and the balance to the Middle East,” said Continental Sime chief executive, Mohd Shukri Baharom. At the same time Mr Shukri Baharom signed a memorandum of understanding between Continental Sime and Multi Automotive Service and Assist Sdn Bhd (MASA) for the Continental Sime Tyre Auto Assist Programme (CSTAA).

Regarding plans for expansion in the Association of Southeast Asian Nations (ASEAN), the chief executive made it clear that Continental Sime planned to create independent business units in Thailand and Indonesia in order to utilise the countries’ rapid industrialisation.

“We already set up a representative office in Indonesia and Thailand some time ago,” he said, adding that the company hoped to capture a 15 per cent share of the ASEAN market by 2005.