Michelin is interested in a subsidiary Giti Tire

Michelin is interested in a subsidiary Giti Tire
According to Indonesian media, Groupe Michelin is considering to purchase the control of the company PT Gajah Tunggal, owned by Giti Tire.
Michelin now owns 10% stake in Indonesian company, and in the next Michelin should receive about 5 million tires in terms of the agreement Off-Take.

Indonesian VIVAnews website quoted an unnamed source who said that Michelin will buy another 44% stake, and thus get control of the company.

Director, Gajah Tunggal Vijay Katharina (Catharina Widjaja), in turn, said it had not heard that Michelin is going to become a major shareholder of the company. At the same issue Richard, Herve (Herve Richert), Director of International Sales and Marketing, Giti Tire, said that all this is just "media speculation, which we do not pay attention."

According to Tyres & Accessories, in 2010, Gajah Tunggal is going to spend 30-40 million on capital expenditures to be approximately two times higher compared to 2009. This decision in particular due to the continued expansion of production and increasing demand for tires Michelin.

According to the report of the agency Danareksa Research, in 2010, Gajah Tunggal for Michelin will release about 3 million tires, while last year there were 2 million, reported colesa.ru.

In 2011, this figure should grow to 5 million tires. Thus, for five years, sales of Michelin can grow five times, and this means that the interest of French companies to the Indonesian manufacturers also will grow