A Brief History of Company
TIRE
GAJAH TUNGGAL
TIRE
GAJAH TUNGGAL
1951:
PT Gajah Tunggal was established to produce and distribute bicycle tires and inner tubes.
1973:
Technical assistance agreement was signed with the Inoue Rubber Company of Japan to produce motorcycle tires.
1981:
The Company started producing bias tires for passenger and commercial vehicles with technical assistance from the Yokohama Rubber Company of Japan.
1990:
PT Gajah Tunggal Tbk was listed on the Jakarta and Surabaya Stock Exchange.
1991:
PT Gajah Tunggal Tbk acquired GT Petrochem Industries, a producer of tire cord (TC) and nylon filament.
1993:
The Company started commercial production of radial tires for passenger cars and light trucks.
1995:
PT Gajah Tunggal Tbk acquired Langgeng Baja Pratama (LBP), a steel and bead wire producer.
1996:
PT Gajah Tunggal Tbk acquired Meshindo Alloy Wheel Corporation, the second largest manufacturer of aluminum
alloy wheels in Indonesia. PT Gajah Tunggal Tbk's main subsidiary, PT GT Petrochem Industries, expanded its
operations to include synthetic rubber, ethylene glycol, polyester filament and polyester staple fiber.
Annual Report PT. Gajah Tunggal Tbk
2001:
The Company entered into a manufacturing agreement with Nokian Tyres Group, a leading tire manufacturer based in Finland, to produce a selected range of passenger car tires, including winter (snow) tires, for markets outside Indonesia.
2002:
PT Gajah Tunggal Tbk completed its restructuring arising from the Asian financial crisis, enabling the
Company to lower its debt burden by more than US$200m and converted debt in to FRN.
2004:
Completion of Corporate restructuring in which PT GT Petrochem Industries was deconsolidated, and at the same time acquired its assets of TC and Styrene Butadiene Rubber (SBR).
Divestment of Steel Wire Producer Langgeng Bajapratama. Start of off-take agreement with Michelin, in which Gajah Tunggal is to produce 5 million tires per year for Michelin in export markets by the year 2010. Launch of TireZone outlets.
2005:
The Company issued a US$ 325 million Global Bond, and used the proceeds to buyback some of its notes as well as to finance the expansion. Divestment of aluminum alloy wheels producer Meshindo Alloy Wheel. Start of the production of tires for the Michelin off-take program
2006:
PT Gajah Tunggal Tbk was awarded "Best Managed Company in Indonesia" by Euromoney Magazine.
2007:
Additional US$ 95 million Bond re-tap, to finance the remainder of the expansion as well as capital expenditures relating to its research and development activities.
The Company also re-entered the equity market with a 10 to 1 Rights issue, totaling Rp 158.4 billion (around US$17 million) for working capital needs.
Company Profile
Established in 1951, PT Gajah Tunggal Tbk. began its tire manufacturing by producing bicycle tires. Thereafter, the Company has grown to become the largest integrated tire producer in South-East Asia.
The Company expanded its production and diversified its product range by producing motorcycle tires in 1971, followed by bias tires for passenger and commercial vehicles in 1981. In the early '90's, the Company started to produce radial tires for passenger cars and light trucks.
Plant Expansion and Development
The Company currently operates 5 modernized tires and inner tubes manufacturing plants for many types and sizes of radial, bias and motorcycle tires, and 2 tire-related production facilities which manufacture tire cord and SBR (Styrene Butadiene Rubber). These five tire plants together with the tire cord plant are strategically located in Tangerang, about 30 kilometers west of Jakarta, Indonesia. The Company's SBR plant is located at a Chemicals Industrial park in Merak, Banten, about 90 km west of Jakarta.In 2005, the Company commenced an expansion program aimed at increasing the installed capacities of radial and motorcycle tires as well as motorcycle tubes at sites adjacent to the current tire plants. Under this program, radial tire installed capacity will increase from 30,000 pcs/day to 45,000 pcs/day. This expansion will be done in three stages and is expected to be completed
in the coming years. Motorcycle tire installed capacity will increase from 37,000 pcs/day in 2005 to 105,000 pcs/day, also in stages. Currently the motorcycle tire capacity runs at 59,000 pcs/day already, while radial tire capacity increased to 35,000 pcs/day.
Vertical Integration
The Company continues to pursue the rationalization of its production costs and to secure the supply of raw materials for its manufacturing operations through a vertical integration strategy which was executed through the acquisition of assets that produce key raw materials for its manufacturing process.
The Company acquired and integrated its tire cord and synthetic rubber manufacturing assets in 2004. As of 2008, around half of the Company's tire cord and SBR production output are used for own tire production, whilst the remaining is sold to third parties.
Company Vision & Mission
Gajah Tunggal’s operational development is guided by its vision and mission that help to keep the
Company’s performance and strategy focused towards target achievements and success as a Good
Corporate Citizen. The vision and mission help Gajah Tunggal to always strive for its ideals by guiding the management and employees as they work together for common goals that will contribute to the long-term success of the Company.
Company’s performance and strategy focused towards target achievements and success as a Good
Corporate Citizen. The vision and mission help Gajah Tunggal to always strive for its ideals by guiding the management and employees as they work together for common goals that will contribute to the long-term success of the Company.
To be a Good Corporate Citizen with
Solid Financial Standing, Market
Leadership in Indonesia and an
established Global Reputation as a
Manufacturer of Quality Tires.
M i s s i o n
M i s s i o n
To be a leading and dependable producer of an optimal range of competitively priced, superior quality tires while also pursuing brand equity and corporate social responsibilities as well as delivering profitability and returns to shareholders and values to stakeholders.
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