China's SAIC-GM-Wuling Automobile Starts Construction of $700 Million Indonesian Plant
August 21 2015 - 1:22AM
Dow Jones News
By I Made Sentana
JAKARTA, Indonesia--SAIC-GM-Wuling Automobile Co. on Friday
began the construction of a $700 million car plant in Indonesia
with a maximum annual capacity of 150,000 units.
The joint venture of SAIC Motor Corp. (600104.SH), General
Motors Co. (GM) and Wuling Motors Holdings Ltd. (0305.HK) will
produce mini-commercial, multi-purpose vehicles in the 600,000
square-meter plant in Bekasi, located about 70 kilometers east of
capital Jakarta.
This is the company's first plant outside China.
The plant's assembly section is expected to be constructed by
late 2017, followed by the construction of a facility to
manufacture spare parts.
"Indonesia is the largest economy in Southeast Asia, with large
market for cars," SGMW Vice President Yuan Zijhun said.
The company's decision to build a plant in Indonesia comes as
car sales have fallen since the second half of 2013, reflecting its
confidence in the long-term potential of the Southeast Asian
economy.
Meanwhile, GM said earlier this year it will shut its Bekasi
assembly plant after failing to gain significant market share to
sustain operations. The company said it will import cars from its
Thailand plant to sell in Indonesia.
Write to I Made Sentana at i-made.sentana@wsj.com
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(END) Dow Jones Newswires
August 21, 2015 01:07 ET (05:07 GMT)
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