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Press Release 2012

Home > Press Release > 2012 > March 23

Establishing Joint Venture of Sintered Parts in Indonesia

March 23, 2012

Sumitomo Electric Industries, Ltd.

Sumitomo Electric Industries, Ltd. has agreed with two major Indonesian corporations, WLK Group and Santini Group, to establish a joint venture that manufactures and sells sintered parts in the country.

Sintered mechanical partsSintered parts are powder metallurgy structural parts made mainly of iron powder. As they can be molded into precise and complex shapes, they are widely used in products including automobiles, office instruments, and home appliances.

 

The Sumitomo Electric Group has expanded its sintered products business from Japan to North America, Europe and Asia, and has supplied a variety of sintered parts to automakers, auto parts manufacturers and other industrial customers around the world. It has thus far supplied the Indonesian market through its Malaysian and Thai plants.

 

In Indonesia, however, the recent progress in motorization has boosted the local auto production and prompted foreign auto parts manufacturers to tap into the market. In light of this situation, the Sumitomo Electric Group has decided to collaborate with WLK and Santini, leaders in the Indonesian automotive market, to jointly establish a company to manufacture and sell sintered products in the country. This joint venture aims to expand the sales of these products, for which great demand is expected, and to attentively respond to customers’ needs. The new company plans to gain a large share in the Indonesian market by supplying four-wheel and two-wheel engine parts, transmission parts, etc.

 

In parallel with this joint venture, we will also launch a new company in Indonesia to provide cutting tools to be used for manufacturing sintered parts. We expect that these two industrial materials business will create various synergies particularly in reducing costs and tool inventory as well as facilitating material procurement.

 

Profile of New Company

Company name PT. Sumiden Sintered Components Indonesia (provisional name)
Location Lippo Industrial Park, Bekasi, West Jawa, the Republic of Indonesia
President Undecided
Business Manufacturing and sales of sintered powder metal products etc.
Capital 16 million US dollars (approx. 1.28 billion yen, 1 US dollar = 80 yen)
Investment ratio Sumitomo Electric Group: 66%, WLK Group and Santini Group: 34% (in total)
Establishment April 2012 (scheduled)
Start of operation February 2013 (scheduled)
Employees Approx. 120 in FY 2013
Prospective sales Approx. 1.8 billion yen in FY 2015

 

【About WLK Group and Santini Group】

Both WLK Group and Santini Group belong to the same leading conglomerate in Indonesia. Santini Group is led by Mr. Sofjan Wanandi, currently chairman of APINDO (Indonesian Employers Association). Santini has more than 20 companies in a diversified field with more than 15,000 employees, and is now run by Mr. Wandi Wanandi and Mr. Luki Wanandi. WLK is a private company of WLK Group that invests in automotive component business in Indonesia and is currently run by Mr. Budi Pranadi and Mr. Adi Pranadi.

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