London -- Pirelli intends to build a euro 66 million plant to make moto tyres in Indonesia. Details are still being finalised, but Marco Tronchetti Provera, CEO said the company intends to form a joint venture with a local partner called PT Astra Otoparts Tbk and will select a site in the coming weeks.
The unit is expected to be on stream in 2013 and to be making 7 million units/year in both radial and cross-ply constructions by 2016.
The venture will focus on radial segment for small motorcycles in the 50cc - 250cc engine range with some and some 500cc, with projected markets in Indonesia and the rest of Asia as well as exports to the US and the EU. He said the radial market in Indonesia is developing quickly, and the venture hopes to take advantage of the move toward radialisation. Indonesia is one of the world's largest markets for motorcycles.
Francesco Gori said the tyres are relatively small tyres compared with the supersport products being made in Breuberg, and which will be made in the new China moto plant.