TVS Motor-ASEAN

completed

The proposed project consists of the establishment and start-up of operations of a green-field, two-wheel motor vehicle manufacturing plant in Karawang, about 55 km east of Jakarta, Indonesia, by PT TVS Motor Company Indonesia (PT TVS, or the company). The plant has been established in a major industrial development known as Suryacipta City of Industry (industrial zone), which includes a number of major automotive-related manufacturing concerns such as Bridgestone and GS Battery among its tenants. The initial phase of project construction is complete and facility will have an initial annual capacity of 300,000 vehicles. The vehicles manufactured will comply with emission norms of EURO II ECE R40. The project sponsor, TVS Motor Company Limited, is one of the largest two-wheeler manufacturers in India. PT TVS has long term usage rights on a 20 hectare lot in the industrial zone, which has been established since 1997. The main assembly plant and all related facilities including paint shops, powerhouse, LPG and diesel storage areas, waste water treatment plants, staff canteen, administrative block and test track have recently been completed and the plant is gearing up for full production by July 2007. The assembly plant occupies an area of 16,500 m2 area inclusive of a self-contained engine assembly unit and two automated paint lines of German manufacture – a solvent-based paint line for plastic components and a metals coating line. Major engine parts and gearboxes are currently imported from the Company’s parent factories in India. Frames, fuel tanks, clutch assemblies, plastic parts, tires and tubes, paints and solvents are procured from Indonesian suppliers.