Under the distribution agreement, GT will distribute in Indonesia, through its extensive network, a selected range of Michelin Group's passenger car and light truck tyres, including Michelin and BFGoodrich brands, for the replacement market. This agreement will enhance GT's and Michelin's distribution and market positions in Indonesia. Both companies agree that the co-operation will have long term benefits for both Michelin and GT, and allow them to better serve the customer segments in their respective markets, through a richer brand and product offer.
The investment in Gajah Tunggal marks Michelin's third investment in Asian tyre manufacturers in recent years. The company already has similar co-operations and minority shareholding in Hankook Tire (Korea) and Apollo Tyres (India)