Michelin and PT Gajah Tunggal Sign Co-operation Agreements

TIRES ONLINE - Michelin & PT Gajah Tunggal Tbk (GT) have announced the signing of business co-operation agreements focused on the manufacture of passenger car tyres for Michelin markets and distribution activities in Indonesia. Under the manufacturing agreement, GT will manufacture a selected range of Michelin Group's associated brands of car tyres (excluding the Michelin brand), including high speed rated tyres, for various markets served by Michelin. Michelin and GT have also, in this context, announced that Michelin has acquired 10% of GT share capital.

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)