Mitsubishi Plans to Build New Plant in Indonesia image

Mitsubishi plans to increase capacity in Indonesia and build a new facility in the region to deal with rising demand in the emerging Asian markets.

“It is true that we are considering strengthening our operations in Indonesia, but nothing has been decided as of now,” a company spokesman said on Saturday, June 15th.

The Nikkei business daily published a report according to which Mitsubishi, trader Mitsubishi Corp and partners in Indonesia plan to build a new facility in the region starting with March 2017, with an investment of around 40 billion yen ($422.90 million). If the automaker will build a new plant, annual production capacity would reach 100,000 vehicles.

A Mitsubishi spokesman said that the automaker, which manufactures the i-MiEV electric vehicle, the Outlander Sport SUV and the Triton pickups, plans to reach a net profit of 100 billion yen ($1.06 billion) for the financial year ending March 2017. For the financial year ending March 2014, Mitsubishi predicts a net profit of 50 billion yen.

Last month Le Figaro newspaper said that Renault considered a partnership with Mitsubishi, but the Japanese automaker denied the report, while Renault said that it had several talks with Mitsubishi about a possible cooperation, but had not resulted in a deal.

Source: finance.yahoo.com