The scramble to purchase a controlling stake in Indonesia’s second largest tyre manufacturer Multistrada Arah Sarana PT continues, as Reuters reports that the company’s shareholders have rejected a bid from Hankook for a controlling stake. Yokohama and private equity investment firm TPG Capital are reported to be the other bidders, though a Hankook spokesperson told Reuters that “none of the bids satisfied” Multistrada’s shareholders.
Management at Apollo Tyres are considering the purchase of rubber plantations as a potential means of countering ever increasing rubber prices. On May 27, the tyre maker’s vice-chairman and managing director Neeraj Kanwar told Indian publication The Economic Times that “as far as buying rubber plantations, or for that matter any kind of backward integration, is concerned, we are always open to possibilities depending upon the need of the hour.”
PT Multistrada Arah Sarana Tbk, the Indonesian tyre manufacturer, reportedly achieved record tyre sales in the first quarter of 2010. Local news sources quoted “a source familiar with the matter” as saying Multistrada sold 1.5 million passenger car tyres in the first three months of 2010, with motorcycle tyres sales totally over 600,000 units. These figures are more than fifth up on the same period last year when the company sold 1.2 million of car tyres and half as many motorbike tyres (300,000 units). Multistrada produces the Achilles, Corsa, and Strada brands.
Indonesian manufacturer PT Multistrada Arah Sarana has announced plans to increase its production capacity from 17,000 units per day to 40,000 during 2008. The company’s public relations manager, Prawita Hertika, said that this move was necessary to keep pace with demand, which at present is averaging 100,000 units per day.
Prawita said that the company, which produces the Multi Strada range of tyres, will expand the capacity of its factory in Cikarang, east of Jakarta to meet increasing export demand. Should market requirements necessitate still further expansion, Prawita added, Multistrada has sufficient vacant land at its factory site to accommodate additional development.
The tyremaker at present exports 85 per cent of its production, with the UK, the Middle East and the US three of its key markets.
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