Nissan to Double Production at Indonesia Plant

June 29, 2010
Company wants to expand its 5% market share in Indonesia

Nissan said on June 29 that it plans to invest $20 million in its Indonesian assembly plant to double production capacity for the growing local market.

Chief executive Carlos Ghosn said Nissan targeted more than 10% growth in Southeast Asia's biggest economy in 2013 and compared the local market to rapidly growing emerging economies such as Brazil and Russia.

"We'll start the expansion this year to boost production capacity to 100,000 cars from 50,000 currently," he told said.

"Today we have about five percent market share. This is far below our potential."

He said Nissan would also almost double its Indonesian sales outlets to more than 80.

Indonesia is seeking billions of dollars in foreign investment to help it achieve targets of 7% growth by 2014. But it is being held back by persistent corruption, legal uncertainty, red tape and a lack of adequate basic infrastructure.

"Indonesia can become an export force on the condition that the country improves its infrastructure," Ghosn said.

Copyright Agence France-Presse, 2010

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