Gajah Tunggal Issuing Bonds to Fund Expansion
Indonesia’s PT Gajah Tunggal has revealed plans to issue bonds to the value of US$95 million as part of company plans to invest in the development of two of its tyre manufacturing facilities. The company is looking at increasing its production capacity for motorcycle tyres in order to keep pace with demand both for its own products and those local market products it manufactures under licence for Michelin.
Catharina Widjaja, director of Gajah Tunggal, stated the company requires $170 million to develop the two facilities. The first of these upgraded factories will re-enter production in 2009 with a daily production capacity of 45,000 units, an increase of 15,000 units.