JAKARTA (Indonesia Today) – PT Astra Otoparts (AUTO) Tbk, automotive component subsidiary of Astra International (ASII), has established two new subsidiaries, namely PT Autoplastik Indonesia and PT Velasto Indonesia.

Robby Sani, director of Astra Otoparts, informed stock market authorities Friday that establishment of the two subsidiaries is not a material transaction because AUTO’s total investment will be less than 20% of equity.

PT Autoplastik Indonesia will produce plastic parts for four-wheel OE player. The plant will be located in Karawang Regency, West Java with paid-up capital of Rp75 billion. AUTO holds 100% shares in this subsidiary.

PT Velasto Indonesia, meanwhile, will produce (1) tube for two-wheel vehicles, (2) hose for both two and four-wheel vehicles, and (3) transmission belt for two-wheel. The plant will be located in Purwakarta Regency, West Java with paid-up capital of Rp2.5 billion. AUTO also holds 100% shares in this company. (Indonesia Today)