EP Tyre I

completed

Established in 1993 and headquartered in Citeureup (Bogor), Indonesia, PT. Elangperdana Tyre Industry (”EP Tyre” or “the company”) is a tyre manufacturer with an installed capacity of 4,200,000 tyres per annum. The company’s range of products comprises radial tyres primarily for four wheel vehicles and bias tyres for light trucks. The company’s distribution covers the domestic market as well as foreign markets, exporting to Europe, the United States, Middle East and South East Asia.The operational process of EP Tyre includes weighting and packing of raw materials, mixing of pre-packed materials with natural and synthetic rubber and carbon black in mixers, extruding (forming the compound into the shape), calendering (rolling and covering textile fabric and steel cord with rubber layers), building of green (uncured) tyres, curing (involves loading the green tire into an automatic tire press to be cured at high temperature and pressure), inspection and testing. From the plant located in Citeureup the manufactured tyres are delivered to customers by independent transportation companies. The company’s main facilities include processing and inspection workshops as well as raw materials and tyre storage warehouses. In addition, the company operates auxiliary facilities such as gas and coal fired boilers, and a water treatment unit. A new tyre storage warehouse is under construction at the site and EP Tyre is looking to debottleneck its extrusion capacity and increase its manufacturing capacity by 2,000 tyres per day.The proposed project (“project”) is a loan of up to $25 million to finance the expansion of EP Tyre’s production capacity at the plant in Citeureup and refinance a portion of its existing debt provided to support general operational needs of the company.