Conti forms truck tire venture PUCHOV, Slovak Republic—Continental A.G. and Slovakian tire maker Matador A.S. are setting up a joint venture to produce medium truck tires at Matador's Puchov factory.
As majority owner, Continental will supply the technology for and invest about $60 million in the project, which will use Matador's existing truck tire facilities at first, but will triple Puchov's production capacity by the second half of 2001 to 1.5 million units per year. The venture eventually may be expanded to 2 million units/year.
The creation of this joint venture may lead to Conti closing one of its three existing western European truck tire plants: Herstal, Belgium, Traiskirchen, Austria, or Hanover, Germany, each with capacities of less than 1 million units.
Conti has been evaluating a consolidation of truck tire manufacturing for more than two years, citing the high cost of plants with annual capacities of less than 1 million units.
P.T. Gajah Tunggal taken over
JAKARTA, Indonesia—Gajah Tunggal Group has agreed to cede majority ownership of its tire and petrochemical subsidiary, P.T. Gajah Tunggal Tbk, to the Indonesian government to help settle $3.7 billion in debts incurred by failed banks controlled by the firm's owners, the Nursalim family.
The Indonesian government will set up holding companies to oversee the assets, but the Nursalim family is expected to retain 25-percent ownership and hold on to management control.
P.T. Gajah Tunggal comprises tire maker Gajah Tunggal, along with tire textile, steel cord, alloy wheel and synthetic rubber/chemical companies.