Toyota Industries Corporation (TICO; President: Tetsuro Toyoda) will construct a new factory to produce automotive air-conditioning compressors at Bekasi, West Java Province, Republic of Indonesia, thereby increasing supply capabilities in response to the growing ASEAN automobile market.
The factory will be constructed as a new facility for the compressor-manufacturing subsidiary P.T. TD Automotive Compressor Indonesia (TACI) and begin operation in May 2014.
The construction of the new factory is planned to bring capital investment of 747 billion Rupiahs (approximately 6.3 billion yen) and 500 new jobs.
With an annual production capacity of 1.6 million units at its present factory, TACI currently supplies compressors to the ASEAN market centering on Indonesia and Thailand. Going forward, however, in addition to increasing demand within the ASEAN region, TACI's supply to India, Brazil, and other non-ASEAN countries is planned to expand. In response to these situations, TACI intends to relocate production in stages from its present factory, which has become too crowded and cramped, to the new factory, and to boost annual production capacity to 3 million units. Also, TACI is endeavoring to increase its local procurement rate to further improve its competitiveness.
TICO will work to optimize its global supply system covering Japan, North America, Europe, Asia, and South America so as to respond swiftly and accurately to worldwide customer needs with the aim of further growing its compressor business.