NTN Corporation (hereafter, NTN) announces the signing of a joint venture agreement with PT. Inti Ganda Perdana (hereafter, IGP) of Astra Group in order to expand the supply of constant velocity joint (hereafter, CVJ) which is essential component for front-wheel drive vehicles (FF vehicles) whose demand is expanding in automotive market in Indonesia. We will establish a joint venture company which manufactures the CVJ in Karawang district of western Java (KIM industrial park)
1.Aim of joint venture agreement
In production of automobile in Indonesia, the major drive system is changing from axle-suspended (rigid axle) rear-wheel-driven vehicles (FR vehicles) to front-wheel-driven vehicles (FF vehicles) due to various environmental regulations. As a result, demand for CVJ, which is essential component for FF vehicles, is expected to increase rapidly. In ASEAN and South Asia, NTN has been producing CVJ locally in Thailand and India but not in Indonesia until today.
Under these circumstances, IGP of Astra Group which manufactures automotive components in Indonesia, proposed a joint venture for local production of CVJ. NTN and IGP agreed to conclude a joint venture because it is necessary for NTN to locally produce CVJ and the goal of NTN and IGP is alignment in expanding sales and increasing the market shares.
NTN and IGP will establish a new company based on the joint venture agreement, and will construct a plant with the aim of starting mass production in August 2020. By local production in Indonesia for the first time, we will realize speeding up the response to customer and shorten delivery lead time. We will also increase our presence and promote business development to secure overwhelming market share of CVJ in the automotive market in Indonesia.
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SOURCE: NTN
