Gajah Tunggal Production, Prices to Increase

Price rises of 10 per cent have been announced by PT Gajah Tunggal Tbk, however a representative of the Indonesian company states plans to increase sales by as much as 20 per cent remain firm. “We are still targeting an increase in our sales revenue of between 15 to 20 per cent this year compared to 2007,” Catharina Widjaja, director of corporate communications, informed Reuters. This sales increase will follow a boost in production output; Widjaja reported daily production for car tyres is anticipated to rise by 5,000 units to 35,000 and motorcycle tyres from 45,0000 to 60,000 units by the end of the year.

On the issue of price rises, Widjaja said “Gajah Tunggal raised the price by around 5 per cent in Q1 of 2008 and another 5 per cent recently. GT will continue to monitor the impact of the rising prices of raw material.”